The lower rate is effective tomorrow and is available only on new mortgage applications made until Feb. 29, the lender said today in a statement. The previous rate for a four-year fixed mortgage at Toronto-Dominion was 4.79 percent.
Bank of Montreal, the country’s fourth-largest bank, yesterday cut the rate on its five-year mortgage by 50 basis points to 2.99 percent, a record low for the Toronto-based lender. Toronto-Dominion also cut its six- and seven-year mortgage rates yesterday.
“We definitely acknowledge that there is a competitive rate environment,” Farhaneh Haque, the bank’s director of mortgage advice, said today in a telephone interview. “If we look at the bigger picture here, we’re gearing up for a spring market that typically starts in February.”
Canadian household debt rose to a record 153 percent of disposable income in the third quarter of 2011 as borrowing costs increased, according to a Dec. 13 report by Statistics Canada.
To contact the reporter on this story: Sean B. Pasternak in Toronto at firstname.lastname@example.org.