The other major banks followed RBC’s move to lower mortgage rates this week. Bank mortgage rates are dropping as result of lower 1, 2 and 5 year bond yields. Bond yields drive fixed rates because they are a big part of mortgage lenders’ cost of funds that they use for fixed mortgage rates. Variable mortgage rates have stayed the same as the Bank of Canada has not changed their target for the overnight rate (which influences variable rates). The next Bank of Canada announcement is on December 8, 2009.

CIBC

CIBC mortgage rate changes:

Six-month convertible	4.65 per cent	no change
Six-month open	6.70 per cent	no change
One-year open	6.45 per cent	no change
One-year closed	3.60 per cent	down 0.20 per cent
Two-year closed	3.75 per cent	down 0.20 per cent
Three-year closed	4.25 per cent	down 0.20 per cent
Four-year closed	5.19 per cent	down 0.10 per cent
Five-year closed	5.59 per cent	down 0.25 per cent
Seven-year closed	6.65 per cent	down 0.15 per cent
10-year closed	6.80 per cent	down 0.15 per cent

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TD

TD mortgage rates changes:

Fixed Rates

6-month convertible	4.60%	N/C
1-year open	6.55%	N/C
1-year closed	3.65%	-0.10%
2-year closed	3.95%	-0.10%
3-year closed	4.50%	-0.10%
4-year closed	5.19%	-0.10%
5-year closed	5.59%	-0.04%
6-year closed	6.10%	N/C
7-year closed	6.60%	N/C
10-year closed	6.70%	N/C

Variable Rates

VIRM Closed TD Mortgage Prime
VIRM Open TD Mortgage Prime + 0.80%

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BMO

BMO mortgage rate changes:

Fixed Rates

6 month fixed convertible	4.65%	0
6 month fixed open	6.45%	0
1 year fixed open	6.55%	-0.25
1 year fixed closed	3.50%	-0.20%
2 year fixed closed	3.75%	-0.20%
3 year fixed closed	4.25%	-0.20%
4 year fixed closed	5.19%	-0.10%
5 year fixed closed	5.59%	-0.19%
6 year fixed closed	5.59%	-0.19%
7 year fixed closed	6.60%	-0.20%
10 year fixed closed	6.70%	-0.25%
18 year fixed open	8.95	0%

Variable rates

5 year closed 2.25%
3 year open 3.05%

Special Offers*

5 year(fixed/closed) 4.29% -0.19%

*This special discounted rate is not the posted rate of BMO Bank of
Montreal. Rate is subject to change without notice. Offer may be
withdrawn or extended without notice. Mortgage funds must be advanced
within 90 days of the application.

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Scotiabank

Scotiabank mortgage rate changes:

one-year open	6.55%	-0.20%
one-year closed	4.35%	-0.20%
two-year closed	3.95%	-0.40%
three-year closed	4.50%	-0.25%
four-year closed	5.19%	-0.11%
five-year closed	5.59%	-0.25%

Their special discounted rates* also changed:

one-year fixed closed 2.35 per cent (decreases by 0.20 per cent)
five-year fixed closed 4.29 per cent (decreases by 0.25 per cent)

* The special discounted rates are not the posted rates of Scotiabank. Rates are subject to change without notice. Offers may be withdrawn or extended without notice and cannot be combined with any other rate discounts, offers, or promotions. Mortgage funds must be advanced within 120 days of the application date. Other conditions may apply.

Tags: bank mortgage rates, BMO, CIBC, lower mortgage rates, Scotiabank, TD