RBC Royal Bank is cutting its residential mortgage rates effective Nov. 26, and is introducing three new mortgage rate offers, the bank announced Wednesday.

The bank is dropping its posted mortgages by 25 to 75 basis points, depending upon the term of the mortgage. For example, the rate for a six-month open mortgage drops 25 bps to 7.9%, while the rate for a one-year closed mortgage falls 75 bps to 5.6%.

RBC said it is also providing more protection for homeowners during the current economic volatility by introducing three new mortgage special offers.

A one-year fixed closed mortgage at 4.35% is available to homeowners who do not want to experience rate fluctuations and plan to wait and see where rates will be a year from now before making further decisions about their mortgage.

A five-year variable closed mortgage at 4.6% is best suited to homeowners who want exposure to potentially favourable rate fluctuations but with the opportunity to convert to a fixed rate providing flexibility with security.

A four-year fixed rate closed mortgage at 4.89% is available to individuals seeking the security of a longer term at a low rate, providing payment stability and rate security.

These new offers are available within the RBC Homeline Plan.

“These special mortgage offers provide maximum choice for Canadians to select between a short or long term rate option that best meets their current needs.” said Karen Leggett, head, RBC Home Equity Financing, in a release.

BMO Bank of Montreal, Desjardins Group, Bank of Nova Scotia and Toronto-Dominion Bank also announced cuts to residential mortgage rates.

IE