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More Canadian Banks Cut Mortgage Rates

More of Canada's biggest banks slashed their residential mortgage rates Wednesday, a day after Royal Bank of Canada started the latest round of cuts.

Toronto-Dominion Bank cut its four-, five-, seven- and 10-year fixed rate mortgages to 4.99% (-0.15%), 5.34% (-0.10%), 6.14% (-0.20%) and 6.50% (-0.15%) respectively.

TD also cut its four-, five-, seven- and 10-year closed special fixed rate offers to 4.19% (-0.15%), 4.09% (-0.10%), 4.79% (-0.20%) and 4.99% (-0.20%) respectively.

Canadian Imperial Bank of Commerce cut its four-, five-, seven- and 10-year closed mortgages to 4.99% (-0.15%), 5.34% (-0.10%), 6.50% (-0.20%) and 6.60% (-0.15%).

National Bank adjusted its four- and five-year closed fixed-rate mortgages to 4.99% (-0.15%) and 5.34% (-0.10%). It also cut the 10-year closed mortgage to 6.40% (-0.25%) and the variable-rate closed capped mortgage to 5.34% (-0.10%).

 Desjardins Group, which offers mortgages in Ontario and Quebec, cut its four-, five-, seven- and 10-year mortgages to 4.99% (-0.15%), 5.34% (-0.10%), 6.40% (-0.20%) and 6.60% (-0.15%).

 RBC was the first bank to cut its mortgage rates on Tuesday.

"Mortgage rates are tied to the bank's funding costs. Fixed mortgage rates follow bond yields. Over the last several days, bond yields have decreased and this change reflects the lower yields," an RBC spokeswoman said.

Article by: Eric Lam - Financial Post