Bank of Canada cuts benchmark mortgage rate to the lowest level in three years

 

OTTAWA — The Bank of Canada has cut its benchmark five-year mortgage rate to 4.79 percent, the second cut in three months.

The central bank in May had trimmed the rate to 4.94 percent from 5.04 percent.

Three-year rates now dropped to 3.75 percent and one-year rates remained unchanged at 3.09 percent.

The Big Six banks had already cut their advertised five-year fixed mortgage rates to the same level, though some special offers reduce rates to as little as 2.19 percent.

Lower rates risk propelling housing demand higher.

The Bank of Canada’s governor, Tiff Macklem, indicated about a month ago that rates will be kept low until at least 2023.

Various rates for guaranteed investment certificates also fell with the five-year personal fixed-term dipping 0.18 percentage points to 0.7 percent, but the prime rate remains unchanged at 2.45 percent.