Fixed-rate mortgages ease

April 23, 2020

Weeks after the Bank of Canada slashed its benchmark lending rate to 1.25 per cent, major banks have started to lower the cost of five-year fixed-term mortgages.
Toronto-Dominion Bank lowered its five-year fixed rate to 3.09 per cent from 3.24 per cent on April 17. Royal Bank of Canada is posting its five-year fixed rate at 3.24 per cent and three-year fixed rate at 2.99 per cent.
CIBC is at 3.09 per cent for five-year fixed terms, with three-year fixed terms at 3.94 per cent.
Five-year fixed-rate mortgages ranged between 2.39 per cent and 3.19 per cent as of April 16 at non-bank lenders, according to mortgage brokers. This range is lower than the beginning of April, but still higher than in early March.
Fixed rates are coming down in line with a decline in government bond yields, analysts say, after the shock of COVID-19.