Canadian Banks Cut Mortgage Rates

April 6, 2009 12:53 p.m. EST

Toronto, Ontario (AHN) - A number of large Canadian banks announced over the weekend a cut on their mortgage rates. The simultaneous reductions took effect Saturday.

Among the banks which reduced their home lending rates are the Royal Bank of Canada, Bank of Montreal, Canadian Imperial Bank of Commerce and the Laurentian Bank.

The Royal Bank posted the new rates on its website. The cuts ranged from 0.10 to 0.30 percent. With the 0.20 percent cut, the two-year and three-year rates went down to 4.35 percent and 4.45 percent, while a 0.15 percent reduction in six-month open, six-month convertible, one-year open and one-year closed cut the rates to 6.85 percent, 5.05 percent, 6.85 percent and 4.20 percent. The largest cut was made on four-year closed, now down to 5.14 percent. The least cut was on five-year, seven-year and 10-year closed down by 0.10 percent to 5.45 percent, 6.90 percent and 7.05 percent.

Similar rate cuts were made by the Bank of Montreal, whose 18-year fixed open rate was retained at 8.95 percent. The only exception is BMO's one-year open rate which was at 7.3 percent.

The Royal Imperial Bank of Canada offered a heftier 0.5 percent rate cut on its seven-year closed rate which was cut to 6.5 percent. The Laurentian Bank has similar rates cuts, although its one-year open rate is on par with Bank of Montreal's at 7.3 percent.