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For Sale sign in front yard of houseBrand X Pictures

Scotiabank has joined the race for a bigger chunk of the mortgage market, announcing that it will offer a discounted mortgage rate that brings it in step with other big Canadian banks.

The bank says it will offer a four-year mortgage charging 2.99 per cent interest per year.

Most of its major Canadian competitors announced similar promotions earlier this week.

On Thursday, TD Bank , Royal Bank and CIBC all announced special four-year mortgages charging 2.99 per cent interest per year.

Bank of Montreal on Wednesday said it would offer a five-year mortgage at 2.99 per cent until March 28.

A similar promotion in January set off a race to the bottom with some of BMO's biggest competitors.

The new low rates came as Bank of Canada governor Mark Carney said the No. 1 risk to the Canadian economy continues to be household debt.

The central bank maintained its trendsetting overnight interest rate — which affects variable rate mortgages — at one per cent on Thursday.