SmartHomeOwners

TORONTO: Several of Canada's biggest banks are lowering the rates for their five-year mortgages, the second reduction this month.

Royal Bank (TSX:RY), TD Canada Trust (TSX:TD), Bank of Montreal (TSX:BMO) and National Bank Financial (TSX:NA) said Thursday their posted rate for five-year mortgages will be reduced by 11 basis points to 5.99 per cent, effective Friday.

The other Canadian banks will likely make similar announcements.

``Mortgage rates are still near historical lows. This, combined with cooling house prices resulting from an upswing in listings, will help support affordability for Canadians looking to purchase a home,'' stated Sal Guatieri, senior economist at BMO Capital Markets.

The posted rate for five-year mortgages at Canada's major banks started the month at 6.25 per cent but was lowered by 15 basis points on May 11 along with a range of other rate cuts.

Prior to this month, Canadian mortgage rates had been on the rise.