Three of Canada's major banks announced that they will lower their posted fixed mortgage rates by a tenth of a percent effective Friday, June 25.
The change affects mortgage terms ranging from six months to ten years, as well as convertible mortgage rates. TD Canada Trust, Royal Bank and Bank of Montreal have posted their new five-year closed mortgage rates at 5.89 percent.
This is encouraging news for potential homebuyers; but what many consumers don't know is that banks' posted rates are not necessarily the same ones that they offer to preferred customers. The job of a mortgage broker is to use his or her negotiating power with major lenders to secure the lowest - often unadvertised - mortgage rates for clients.
Canada Mortgage and Housing Corporation offers advice to home buyers on professionals to call on before purchasing a home, including mortgage brokers.
Today's change does not affect rates for variable mortgages, which remain unchanged. The Bank of Canada will issue its next interest rate announcement on July 20, 2010.