Are we heading into another "Rate War"?

[tpurcell4]

This morning a couple of articles came out regarding the upcoming rate war as RBC lowered it fixed rate products with the recent drop in Bond Yields. It does not exactly mirror bond yields (which dropped roughly 0.20%) since the BoC rate announcement, but a rate of 2.84% for 5 years is certainly nothing to snicker at.

With this we will likely start to see some interesting competition from lenders trying to gain market early in the year.

RBC Lowers rates - Financial Post (http://business.financialpost.com/2015/01/26/rbc-lowers-mortgage-rates-on-heels-of-bank-of-canadas-surprise-cut-last-week/)

[blownz]

How much do rates need to drop in order to compensate for the 5-10% wage drops many of the trades people in the province are experiencing/going to experience?

[Brent.ff]

And to think i was happy with 3.35...ugh

[benyl]

When the 10 year mortgage is at 2%, I'll lock in on the rental properties.

[woodywoodford]

Whats the lowest posted rate in town? Cheapest I've seen was 2.69% at that orange mortgage store that's got a few locations in the +15, but thats from before the rate drop.

[HiTempguy1]

ratehub.ca is helpful.

With these rates, I might just have to buy a property this year. I can easily get a DP together, just need to wait for the housing market to drop a bit. There goes my hopes of buying a Focus RS :cry:

[sputnik]

ratespy.com is also really good.

Ugly site but good info.

[TimLacroix]

Originally posted by woodywoodford
Whats the lowest posted rate in town? Cheapest I've seen was 2.69% at that orange mortgage store that's got a few locations in the +15, but thats from before the rate drop.

Yes the "orange mortgage store" is offering 2.69% but comes with restrictions.

Todd and I both have these rates but in many cases will not work for you.

1st - it is available for High Ratio deals only - meaning less than 20% equity / down payment.

2nd - has other restrictions such as large penalty for breaking early, port restrictions, etc.

Remember, not all rates are created equal!

[tpurcell4]

Originally posted by blownz
How much do rates need to drop in order to compensate for the 5-10% wage drops many of the trades people in the province are experiencing/going to experience?

A half percent to a full percent may help. Re-introducing longer amortizations again would help cushion this blow the most for those already in homes if their income is not enough to service. But if these options are not made available, then some people may need to sell and buy lower priced homes if they can.


Originally posted by Woodywoodford Whats the lowest posted rate in town? Cheapest I've seen was 2.69% at that orange mortgage store that's got a few locations in the +15, but thats from before the rate drop.

As Tim mentioned, currently 2.69% is the best rate, and we are advertising a limited product at 2.59% with a range of restrictions on it. We are starting to see more rate specials come available that offer "Fully loaded" products at close to the 2.69% as long as the application closes or funds within 30 to 45 days. Most of these are sitting around 2.79% currently.