I’ve said it before and I’ll say it again; when one Canadian bank makes a mortgage move, the others will follow.
Bank of Montreal has taken the lead in the last few days by boldly reducing their five-year closed variable rate mortgage offer to straight prime. That’s currently 2.25% for those who don’t keep track of these things. Buckling under the peer pressure, Scotiabank quickly jumped on board, followed by Royal Bank of Canada. National Trust and other financial companies have joined the cause too.
This is the peak of mortgage season, and our banks have a good chunk of cash at their disposal to lend the wanton homeowner. If you’re bank or financial institution hasn’t made the move to prime, feel free to haggle your way down, or just wait a few days until they also drop their rates.
Will we be seeing rates with a spread below prime on the horizon? Maybe not as an official posting right away, be we Canadians love to bargain with our banks, and if they advertise prime, you can bet there’s a homeowner asking for a little better. It’s the Canadian way.
