What does it mean when RBC lowers it's fixed-rate mortgages?

Driving to work today, I listened to CBC radio announce that RBC has, "quietly" reduced rates on it's fixed-rate mortgages. I listened with a smugness, since most wholesale mortgage lenders in Canada, had already lowered their rates. Those following the Canadian bond market have noticed a trend of lower yields, which directly impact fixed rate mortgages (see the chart below...thanks to the Bank of Canada for this information).

For consumers, it means that the bank's posted rates are decreasing by 0.10%, but when negotiating a mortgage rate directly with a bank, it's difficult to determine the lowest rate.  That's were we can help. As mortgage brokers we work to negotiate the best rates for you, in conjunction with the best features.

On a side-note, if you want to accelerate paying-off your mortgage in the next three years, you'll likely want to choose a variable-rate mortgage. Then you don't have to worry about what's happening in the bond market.

Please contact me directly at lastovic.s@mortgagecentre.com if you need help negotiating a better mortgage rate.

Government of Canada benchmark bond yields - 5 year

GRAPH PERIOD: 17 January 2013 - 17 January 2014

Date	Yield
2014-01-17	1.69
2014-01-16	1.71
2014-01-15	1.76
2014-01-14	1.76
2014-01-13	1.72