TORONTO - TD Bank lowered its posted five-year fixed mortgage rate on Tuesday to narrow the gap between the benchmark and the special rates it offers customers. Banks maintain an official posted rate, but also offer lower rates either directly or through brokers and other channels that better reflect market conditions. “Based on current market conditions, lower funding costs have led to a growing variance in customer rates versus posted rates,” said bank spokeswoman Ana Aujla by email. “This rate decrease aligns TD’s 5-year fixed posted rate more closely with current customer rates.”The posted rate is significant for the federal mortgage stress test, which is based on the posted rates at the big Canadian banks. The posted rate is also used for calculating mortgage penalties.

Source: thestar February 04, 2020 17:03 UTC