TORONTO - Royal Bank of Canada (TSX:RY) is lowering its posted rates on mortgages with terms of one, four and five years, effective Wednesday.
The biggest decline will be for Royal's posted rate for one-year closed mortgages, which will drop by one-fifth of a percentage point to 3.40 per cent.
The bank is lowering its posted rate for five-year closed mortgages by one-tenth of a point to 5.49 per cent and its four-year rate by 0.05 percentage points to 5.14 per cent.
TD Bank said it would cut its rates for four- and five-year mortgages. The bank lowered its posted rate for four-year closed mortgages by 0.05 of a percentage point to 5.14 per cent and its five-year closed rate by a tenth of a point to 5.49 per cent.
Banks may offer customers a variety of rates in addition to their posted rates.
In Royal's case, it's also promoting special rates for four- and five-year closed mortgages. They fall to by 0.05 percentage points to 4.09 per cent and by 0.10 percentage points to 4.19 per cent, respectively.