MLS real estate sign.Deborah Baic/The Globe and Mail
Bank of Montreal lowered mortgage rates by one-tenth of a percentage point on most terms up to 10 years.
Standard five-year fixed closed mortgage rates will drop to 5.79 per cent from 5.89 per cent. That brings BMO's rate into line with the five-year rate at Royal Bank of Canada. Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank remain at 5.89 per cent.
BMO's special posted mortgage rate dropped to 4.39 per cent, also down 0.1 percentage point.
One-year mortgage rates did not change. BMO's rate for one-year fixed open mortgages will remain at 6.45 per cent. The rate for one-year fixed closed mortgages rests at 3.50 per cent, on par with RBC but lower than Scotiabank, CIBC, and TD. BMO's new rates will come into effect on Tuesday.
A recent survey by TD Bank found that nine out of 10 Canadians who have just bought or are about to buy their first home intend to take out a mortgage. Only 30 per cent of respondents said they plan to or already have more than a 20 per cent down payment on homes. Over 70 per cent of respondents will require mortgage insurance.
BMO lowered certain mortgage rates in May and June in an attempt to cater to families hoping to buy homes before the upcoming school year, and homebuyers looking to make arrangements for a new home before the HST was initiated in Ontario and B.C.