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It's not competition. It is optimizing profitability.

The large banks will no longer give their best product pricing to just anyone who walks through the door and asks. This is from Canadian Mortgage Trends (Sept 4, 2024): Some banks rethinking strategy on … about mortgage rates offered:

Speaking at the Scotiabank Financials Summit on Wednesday, RBC chief executive Dave McKay said the bank is being more careful when making mortgage offers that wouldn’t meet its threshold rate of return, or hurdle rate.

“We’ve been more careful in saying we won’t chase hot money, where our customer’s just shopping their mortgage at a below hurdle rate.”

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He said that while the U.S. banking industry was able to pass on its higher costs to borrowers, that isn’t the case here.

“In Canada, we’ve absorbed them; we’ve competed them away and we’ve absorbed them into our margins through competition.”

While McKay laments the thinning margins, he said the bank will still go aggressively for the right clients.

“Where we sense there’s a multi-product, longer term relationship with a customer, we’ll certainly go after that hard.”
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It is a tempting bribe though for investment transfers.