THE CANADIAN PRESS

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TORONTO - Several of Canada's big banks said Wednesday they would cut their posted rates for fixed-rate mortgages by up to 0.25 percentage points.

Enlarge Photo

THE CANADIAN PRESS/Nathan Denette

A photograph of the Royal Bank of Canada sign in Toronto's financial district in downtown Toronto on Thursday, Feb. 26, 2009.

The Royal Bank (TSX:RY) cut its rates for one, two and three-year closed mortgages by 0.20 percentage points, effective Thursday.

Canada's largest bank cut is posted five-year closed rate by 0.15 percentage points to 5.59 per cent, while its special five-year closed rate was cut by the same amounted to 4.29 per cent.

Bank of Montreal (TSX:BMO) cut nearly all of its posted fixed rates including its one and 10-year fixed rates by 0.25 percentage points. The bank's five-year rate was dropped by 0.19 percentage points to 5.59 per cent.

BMO offered a special five-year fixed rate of 4.29 per cent, down 0.19 percentage points.

TD Bank (TSX:TD) cut its five-year closed rate, lowering it by 0.15 percentage points to 5.63 per cent, effective Thursday.

The changes reflect lower interest rates in the bond market, where banks raise money to finance their mortgage lending.

Both banks said their variable closed mortgage rate at prime will remain unchanged.

BMO Bank of Montreal Lowers Mortgage Rates

TORONTO, Nov. 18 /CNW/ - BMO

announced today it is decreasing its residential mortgage rates, effective November 19, 2009. The new rates are:

Fixed Rates: To: Change:

6 month fixed convertible 4.65% 0.00%

6 month fixed open 6.45% 0.00%

1 year fixed open 6.55% -0.25%

1 year fixed closed 3.50% -0.20%

2 year fixed closed 3.75% -0.20%

3 year fixed closed 4.25% -0.20%

4 year fixed closed 5.19% -0.10%

5 year fixed closed 5.59% -0.19%

6 year fixed closed 5.59% -0.19%

7 year fixed closed 6.60% -0.20%

10 year fixed closed 6.70% -0.25%

18 year fixed open 8.95% 0.00%

Variable rates: To: Change:

5 year closed 2.25% 0.00%

3 year open 3.05% 0.00%

(The interest on fixed-rate mortgages compounds semi-annually, not in

advance.)

Special Offers To: Change:

5 year(fixed/closed) 4.29% -0.19%

This special discounted rate is not the posted rate of BMO Bank of

Montreal. Rate is subject to change without notice. Offer may be

withdrawn or extended without notice. Mortgage funds must be advanced

within 90 days of the application.