Others may follow RBC rate cut, but change isn't precedent setting + MORE Jan 22nd

TORONTO - Another big Canadian bank has lowered some of its mortgage rates slightly after an initial reduction by the Royal Bank over the weekend.
TD Canada Trust (TSX:TD) now has a posted discounted rate of 3.69 per cent for its five-year fixed mortgages, down from the rate of 3.79 per cent that had been in effect since August.
The bank has also made changes to several of its other closed rates.
TD said in a an email it reviews its rates on an ongoing basis to “remain competitive and provide our customers with flexible mortgage options and the right rate to meet their individual needs.”
The move comes after RBC lowered its rates on several fixed-rate mortgages over the weekend by 10 basis points, bringing its special offer five-year closed rate to 3.69 per cent.
Bank of Montreal (TSX:BMO) and Scotiabank (TSX:BNS) followed Tuesday.
Scotiabank lowered its discounted five-year closed fixed term mortgage 10 basis points to 3.49 per cent on its website Tuesday, down from 3.59 per cent posted on the site Monday…

Company: Butler Mortgage Inc. Position Title: Mortgage Assistant / Closer Years of Experience Required: 2 years Licences or Registrations Required: NA Location of Position: Etobicoke, Ontario Applicants may contact: ron@butlermortgage.ca…

UPDATE: Three more big banks have joined the rate cut fray, all docking their five-year fixed rate options by 10 basis points or more.
TD: 3.69%
Scotiabank: 3.49% (special offer rate)
BMO: 3.69%

Royal Bank of Canada made some covert cuts to their fixed mortgage rate offerings over the weekend, lowering the following by 10 basis points each:
Posted Rates:

2 year: 3.04%
3 year: 3.75%
4 year: 4.64%

Special Offer Rates:

4 year: 3.39%
5 year: 3.69%

RBC is the first big bank to react to lower Government of Canada bond yields, which have been sliding since the beginning of January – five-year benchmark yields have dropped 24 basis points from 1.93 on January 1 to 1.69 on Friday.
Why Are Fixed Mortgage Rates Dropping?
Fixed mortgage rates are directly tied to bond yield levels, and move in tandem – when yields drop, so does the fixed cost of borrowing for Canadian consumers. While the yield of a bond indicates how much of a pay out an investor will receive upon the bond’s maturity, the relationship is inverse – the yield also indicates how much of a risk is posed by the bond investment…

TORONTO – A move by Royal Bank to slightly decrease its fixed mortgage rates may have would-be homeowners wondering whether other banks may follow suit.

TD Canada Trust now has posted discounted rate of 3.69% for its five-year fixed mortgages, down from the rate of 3.79% that had been in effect since August