TD Bank has lowered its five-year posted fixed mortgage rate from 5.34% to 4.99%.

"Based on current market conditions, lower funding costs have led to a growing variance in customer rates versus posted rates," said a bank spokesperson to BNN Bloomberg.

This came amid concerns surrounding coronavirus, which resulted in many investors buying more government-backed bonds. This has lowered the five-year government bond yield from 1.6% to 1.34%.

If the other big banks follow suit, this could compel the Bank of Canada to lower the benchmark rate to below 5% for the first time since the stress test rules were adopted.

This move spells good news for homebuyers and refinancers who are struggling to qualify at the current benchmark rate of 5.19%.

Lowering the stress test rate by 20 basis points could translate to a 2% boost in Canadians' borrowing power which would also mean that it would take 1.8% less income to qualify for a mortgage on the average Canadian home price, assuming a 20% down payment.

Doesn't sound like much, but it could encourage more people to enter the real estate market and lead to a busier spring.