Mortgage shoppers have even more reason to celebrate this month as fixed mortgage rates have dropped again. For the 4th time in the past month many of the big banks including RBC, TD and CIBC have dropped their 4 and 5 year fixed rates by 0.10%.
Fixed rates are heading lower as their main influence, Government bond yields, continue to dive as the benchmark 5 year bond yield is down 5.3% just today to 2.028 at 10.30am on August 24, 2008. With the spread between bond yields and fixed mortgage rates increasing, looking at historic spreads, there is room for fixed rates to fall even further.
Could this be a shift where the big banks start to advertise more based on rate? The first signs of this was a few months back when BMO had a big marketing where they were proactively advertising their 5 year discounted 5 year fixed rate in print, TV etc. This was a change in direction for a of big bank mortgage lender to advertise on rate. Another change in strategic direction is CIBC’s now long-running campaign incentivizing home owners to ‘Switch’ to CIBC with higher air miles and cash back.
Where customer loyalty is the ultimate goal amongst the big banks pushing for a greater ‘share of customer’s wallet’, CIBC actively asking customers to switch shows a change in direction in the market and hopefully a change in Canadian consumer behaviour. Many home owners can save money by simply comparing the market and seeing what other offers are out there to access lower mortgage rates and we hope to help this trend continue.
Here are the latest fixed mortgage rate changes:
RBC fixed mortgage rates changes
TD fixed mortgage rates changes
CIBC fixed mortgage rates changes
You can compare mortgage rates here to see how these stand against brokers and credit unions.