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Canada's Mortgage Rate War Is Back On

Canada's Mortgage Rate War Is Back On

The mortgage rate war has resumed, just in time for spring home-buying season. Bank of Montreal on Tuesday lowered its five-year fixed rate to 2.79% (from 2.99%), the lowest-ever posted five-year rate from one of Canada’s big banks. TD Canada Trust followed suit the next day, adding momentum to the spring sales launch. Already things are warming. There were 6,338 home sales in the GTA in February, up 11% from a year earlier, according to the Toronto Real Estate Board. Last month also saw the average sale price of a detached home rise above $1M for the first time. Sure home loans are cheaper than ever, but as RateSupermarket.ca’s Penelope Graham notes, the sums you'll need to borrow are “astronomical.”