TD Bank has lowered its posted five-year fixed-rate mortgage rate to narrow the gap between the benchmark and the special rates it offers customers.
Banks maintain an official posted rate, but also offer lower rates either directly or through brokers and other channels that better reflect market conditions.
TD cut its five-year posted rate for fixed-rate mortgages from 5.34 per cent to 4.99 per cent after lower funding costs pushed down the rates customers generally pay. TD's customer, or special, rate stands at 3.09 per cent, or 3.11 per cent with annual carrying fees included.
The posted rate is still significant for the federal mortgage stress test, which is based on the posted rates at the big Canadian banks.
Posted rates at Canada's other big banks remain somewhat elevated, but they often follow one another in mortgage rate movements.
Mortgage rates trended downwards last year after the U.S. Federal Reserve cut interest rates three times and Canadian benchmark bond yields trended lower.