For those new to our blog: we had a previous blog post about the effects of new lending rules and the stress test that came into effect January 1st. As a result, the market is officially slowing down and we predict it will continue to stay this way for the next little while (more on these stats in a separate post later).
A slowing market means the banks will have to "up" their strategy on getting new customers and retaining current customers. We have seen this with BMO (Bank of Montreal) earlier in May, which discounted its variable mortgage rate to 2.45 per cent until the end of the month. TD has now followed suit as competition rises! TD is also lowering its five-year variable rate to 2.45 per cent (1.15 per cent lower than the TD Mortgage Prime rate) until May 31st. The new rate applies to new and renewed mortgages, as well as the variable rate portion of certain TD home equity lines of credit.
If the new rate applies to you, congratulations! There are only a few days left to talk to your bank about these discounted variable rates. Canada's other largest lenders have all raised their benchmark posted five-year fixed mortgage rates which means borrowing/lending costs are on the rise. There's a saying in Chinese, "hit the iron while it's hot", meaning take advantage of this opportunity while it's available because it won't last long.
For a breakdown of the mortgage rates at TD, visit their website here.