The cuts take effect Wednesday.

Canada’s largest bank said its new posted rate for a five-year fixed closed mortgage would be 5.59 per cent.

Banks change their fixed rates for mortgages in response to what it costs them to raise money on the bond markets.

Variable-rate mortgages go up or down when the banks adjust their prime rates.

Prime rates last changed on July 20, rising by one quarter of a point after the Bank of Canada increased its benchmark rate to 0.75 per cent.

With files from The Canadian Press