TD Bank and RBC Royal Bank offering four-year special fixed rate mortgages

It did not take long for other major banks to follow suit, by Friday afternoon both TD Bank and RBC Royal Bank were offering four-year special fixed rate mortgages at 2.99 per cent. Both offers expire in February. Toronto-Dominion Bank offer is open until
Feb. 29, 2012. It's also for a four-year term, much less common than the standard five-year.

On Wednesday, TD reduced its posted six-year rate 132 basis points to 3.79 per cent and lowered the posted seven-year fixed rate 91 basis points to 3.99 per cent.

As Investors are fleeing for safety, and Canada is seen as a beacon in the financial world, and a strong international demand for bonds from Canada's biggest major banks, and low borrowing cost for the banks has in turn allowed them to seek new customers by pushing mortgage rates to record lows at the consumer level by cutting their consumer rates.

international bond investors are gobbling up Canadian offerings at record levels because they're generally perceived as being safer than bonds from other countries.

Other banks are expected to make similar offers as they struggle with reduced borrowing by consumers.

As well, a lingering question will be how long historically low mortgage rates can sustain housing prices and sales across the country that already appear to have peaked,

The average Canadian home price will rise by only 2.8 per cent this year, Royal LePage said Thursday in its quarterly report, noting the increase would be lower than the rate of inflation.

The average selling price of a home across the country in November was $360,396, a 4.6 per cent increase over the same month last year. That's down from double-digit increases in the first part of 2011.

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REAL ESTATE SNATCH is the independent real estate blog of Samir Safadi, Sales Representative of West-100 Metro View Realty Ltd, brokerage it is dedicated to covering Real Estate News, digital culture, social media and technology, providing analysis of trends, Market Data , reviewing new development. Offering Real Estate services resources and guides. Services are provided to prospective buyers and sellers of real estate by Samir Safadi, Sales Representative, West-100 Metro View Realty Ltd, brokerage, duly registered in the province of Ontario, under Real Estate and Business Brokers Act, 2002 (REBBA 2002) and Member in good standing with



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