TD is the fourth big bank to quietly reduce some of its mortgage rates

TORONTO – Another big Canadian bank has lowered some of its mortgage rates slightly after an initial reduction by the Royal Bank over the weekend.

TD Canada Trust (TSX:TD) now has a posted discounted rate of 3.69 per cent for its five-year fixed mortgages, down from the rate of 3.79 per cent that had been in effect since August.

The bank has also made changes to several of its other closed rates.

TD said in a an email it reviews its rates on an ongoing basis to “remain competitive and provide our customers with flexible mortgage options and the right rate to meet their individual needs.”

The move comes after RBC lowered its rates on several fixed-rate mortgages over the weekend by 10 basis points, bringing its special offer five-year closed rate to 3.69 per cent.

Bank of Montreal (TSX:BMO) and Scotiabank (TSX:BNS) followed Tuesday.

Scotiabank lowered its discounted five-year closed fixed term mortgage 10 basis points to 3.49 per cent on its website Tuesday, down from 3.59 per cent posted on the site Monday.

BMO, meanwhile, lowered a number of its rates between 10 and 20 basis points, including its discounted five-year fixed rate to 3.69 per cent from 3.89 per cent.

The changes came before the Bank of Canada said Wednesday it was keeping its key interest rate unchanged at one per cent, maintaining a neutral stance on whether it plans to raise or lower the rate from where it has been for more than three years.

The central bank said that while it sees improvements in the Canadian economy, inflation is now expected to be lower than previously projected.

Experts had predicted earlier this week that other lenders would likely follow RBC in reducing rates, but noted the changes represent relatively small drops in an already low interest rate environment and should therefore not be a major consideration for home buyers.