TD Canada Trust has jumped into the fray in offering borrowers a rock-bottom mortgage rate, announcing Thursday a four-year fixed interest rate of 2.99 per cent.
The move by the division of Toronto-Dominion Bank follows Bank of Montreal , which on Wednesday said it would drop its five-year mortgage rate to 2.99 per cent, a cut of half a percentage point.
TD's new rate represents a cut of nearly half a percentage point, from 3.39 per cent.
Other lenders are expected to make similar moves, so they do not lose market share to their rivals.
In January, several lenders cut their rates to these historic low rates, but the deals lasted for only a few weeks, and by early February the rates were moved back significantly.
BMO said its low rate is in place until March 28. TD has set a March 30 deadline.