Tag Archive: posted rates


Another Major Bank Cuts its 5-year Posted Rate

A fourth major bank has cut its posted 5-year fixed rate today. This time it’s BMO. The move comes four long months after the 100+ basis-point collapse in 5-year bond yields. Such a delay in reducing posted rates after large, market-wide rate drops is unusual historically speaking, as we’ve explained previously. See the chart below for more perspective. BMO’s cut today has implications...

TD’s Market-Moving Rate Cut

It turns out TD Canada Trust’s “market-moving rate cut” won’t be so market moving, at least not yet. On Sunday, TD slashed a number of fixed rates on its website. Today it un-slashed them, saying: “Changes to our posted rates on our website were made in error. We apologize for any misunderstanding and please refer to the rates currently posted.”—TD...

Banks Refuse to Hike Posted Rates…So Far

Fixed mortgage rates are rising all around us. The latest players to move are RBC, BMO and NBC. Each of them hiked fixed rates this morning. (The latest bank mortgage rates.) What they didn’t raise was the 5-year posted rate. That matters because big bank posted rates are used to qualify roughly 9 out of 10 mortgage borrowers in this country. They...

Affordability Crisis? Not Yet, RBC

“RBC’s affordability measure hasn’t been this bad since 1990.”—RBC Economics That’s according to RBC’s “Housing Trends and Affordability” report, which is making headlines across the country as we speak. But if you’re house hunting and terrified you won’t get a mortgage, don’t soil your trousers just yet. There’s a devil in RBC’s details. It’s the mortgage rates they assume in...

TD’s Mortgage Rate Gambit

Confusion and angst. That’s what TD caused with its 45-basis-point 5-year posted rate hike on Friday. But as it turns out, no other banks matched it, at least not yet. Unless you’re a TD customer, the bank’s gambit should have limited ill effects. Status Quo with the Stress Test TD’s monster move had no impact on the mortgage qualifying rate (MQR) this week,...

TD Ramps Up Its 5-year Posted Rate

We’re seeing government bond yields approaching seven-year highs, and now this. TD has just boosted its posted 5-year fixed a whopping 45 basis points (bps) to 5.59%. Over the last decade, the average increase to posted 5-year fixed rates has been 24 bps. A 45-bps bump is rare, and the most in eight years. If at least two other Big 6 banks...