Five of Canada’s major banks cut their posted mortgage rates by one tenth of a percentage point, effective August 17, 2010. For example, the five-year closed mortgage rate fell by 0.1% to 5.49%.The banks involved in the rate cut are the Royal Bank of Canada, Bank of Montreal, Scotiabank, CIBC, and Laurentian Bank.
The rate cut followed a report by the Canadian Real Estate Association, which stated a 6.8% decrease in housing sales in July. RBC was the first to announce a reduction in their rates, with the other four banks quickly following suit.