Its official... BoC has Announced it will cut rate to 0.50%.
It will be interesting to see when and how much lenders will drop the Prime rate? Last time the BoC cut its rate by 0.25%... the lenders cut the Prime rate by 0.15%.
Its official... BoC has Announced it will cut rate to 0.50%.
It will be interesting to see when and how much lenders will drop the Prime rate? Last time the BoC cut its rate by 0.25%... the lenders cut the Prime rate by 0.15%.
Thanks,
Tim Lacroix | 403-648-1541
Mortgage. Made Easy Experts
Mortgage Connection
www.TimLacroix.com
If you have any questions please feel free to PM me or email [email protected]
Click here to View current Mortgage Rates
Maybe this makes more sense here:
Originally posted by ExtraSlow
Not sure if this is the right place for this, but what are folks thoughts on the possibility that the US Fed may raise interest rates this year while the Bank of Canada may lower them?
I don't think we've seen them moving in opposite directions recently. Usually they move in the same direction, even if the moves are not timed to coincide.
What effect would that have on mortgage rates?
So I guess now my question is what effect does the US rate have on Canadian mortgages. None? Does it effect the bond markets?
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Originally posted by ExtraSlow
Maybe this makes more sense here:
So I guess now my question is what effect does the US rate have on Canadian mortgages. None? Does it effect the bond markets?
Likely little effect on CDN Mortgages. What you would see though is continued weakness in the C$. As the spread between US$ and C$ interest rate gets bigger, the C$ will get weaker.
TD just announced that they are dropping Prime by 0.10%.
What do you think about this?
It's the 0.10% they didn't offer from the last Bank of Canada cut.
Thanks,
Tim Lacroix | 403-648-1541
Mortgage. Made Easy Experts
Mortgage Connection
www.TimLacroix.com
If you have any questions please feel free to PM me or email [email protected]
Click here to View current Mortgage Rates
Predicted since they reluctantly gave us 0.15% last time. So the banks has pocketed 0.25% so far. At this rate, I really doubt we will see more than another 0.25% is lending rate drop.Originally posted by TimLacroix
TD just announced that they are dropping Prime by 0.10%.
What do you think about this?
It's the 0.10% they didn't offer from the last Bank of Canada cut.
The question is, US just hinted again rate increase by end of the year. How is that going to impact our mortgage rates, if any.
I think that banks are a bunch of crooks.Originally posted by TimLacroix
TD just announced that they are dropping Prime by 0.10%.
What do you think about this?
It's the 0.10% they didn't offer from the last Bank of Canada cut.
and variable rates are almost a scam.... people take a gamble, and get screwed
I don't know. It still sucks but you are asking someone to process large capital transactions and take on some risk for 2%. Even credit card/digital payment business make more than that.Originally posted by Russo
I think that banks are a bunch of crooks.
and variable rates are almost a scam.... people take a gamble, and get screwed
And if you look at the real estate market in TO and Van, it's still way overheated. Lower rate just encourage a bigger bubble and bigger crash.
Average 2 stories home in:
TO: ~$850K
Van: ~$1.4M
Calgary: ~$480K
It's scary.
...
Last edited by Sugarphreak; 08-14-2019 at 12:55 PM.
Why not offer the same drop on prime as Bank of Canada, and make their discount on variable less keeping the overall interest higher for new mortgages and current customers happy...Originally posted by Xtrema
I don't know. It still sucks but you are asking someone to process large capital transactions and take on some risk for 2%. Even credit card/digital payment business make more than that.
And if you look at the real estate market in TO and Van, it's still way overheated. Lower rate just encourage a bigger bubble and bigger crash.
Average 2 stories home in:
TO: ~$850K
Van: ~$1.4M
Calgary: ~$480K
It's scary.
I guess it wouldn't apply just to mortgages but any new loans that are prime + %
We all know that whenever bank of Canada will increase their rates, Banks will increase by the same amount and not less
My guess is the competitive rate environment right now is driving that choice. The banks would rather reduce their prime rate marginally, than to stop offering the deep discounted variable rates.Originally posted by Russo
Why not offer the same drop on prime as Bank of Canada, and make their discount on variable less keeping the overall interest higher for new mortgages and current customers happy...
I guess it wouldn't apply just to mortgages but any new loans that are prime + %
We all know that whenever bank of Canada will increase their rates, Banks will increase by the same amount and not less
The mortgage is a loss leader for the banks, and they do not want to scare that business away at this time, and advertising rates at P-0.70 to Prime - 0.80% is more attractive to consumers than Prime - 0.50%.
How soon did you forget that banks got burnt by prime-2% deals.Originally posted by Russo
Why not offer the same drop on prime as Bank of Canada, and make their discount on variable less keeping the overall interest higher for new mortgages and current customers happy...
If you had a prime-2% deal in 2007 to mid 2008, you basically lived interests free for a 5 years term.
But then again, you did take a 15% drop on equity and for most that's losing down payment and then some if you weren't able to hold on to the property.
http://www.tradingeconomics.com/cana...k-lending-rate
http://www.bankofcanada.ca/rates/int...nterest-rates/
Save Yo nickels.
Cocoa $12,000 per ton.
.
Last edited by Russo; 07-15-2015 at 12:21 PM.
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Last edited by kaput; 03-12-2019 at 12:48 AM.
Interesting... RBC lowers Prime by 0.15% this afternoon... slightly better than TD's 0.10%.
http://business.financialpost.com/pe...-market-impact
Thanks,
Tim Lacroix | 403-648-1541
Mortgage. Made Easy Experts
Mortgage Connection
www.TimLacroix.com
If you have any questions please feel free to PM me or email [email protected]
Click here to View current Mortgage Rates
At these rates, it makes sense to move up in the market.
Time to upgrade!
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The savings of 0.15 Is not that much on a mortgage when you actually break down the numbers.Originally posted by ExtraSlow
At these rates, it makes sense to move up in the market.
Time to upgrade!
Royal Bank, the Bank of Montreal, CIBC and Scotiabank all decreased their prime lending rates by .15Originally posted by TimLacroix
Interesting... RBC lowers Prime by 0.15% this afternoon... slightly better than TD's 0.10%.
http://business.financialpost.com/pe...-market-impact
Can't find anything about ATB, that's who my mortgage is with.
I feel like I am losing money not having a mortgage right now! lol
I went looking at some houses last weekend and I thought it was funny that the builders were saying there aren't many lots left and the next stage will increase 30% in price. They claim to be extremely busy, but the sales associates in new homes are as bad as realtors. I know a guy that owns a home building company in Calgary and he tells a very different story about how slow the industry is right now.
Layoffs aren't done yet in AB (in my company anyway) and I doubt 25 basis points on prime will help AB.
I love what this did to the dollar though (for right now anyway) as I have about $15K US I want to change over.
I live in a new development (still being finished) and you definitely see a lot less new homes being started versus last year. There's even almost finished buildings with the builders signs out front saying for sale. Never saw one of those last year.Originally posted by blownz
I feel like I am losing money not having a mortgage right now! lol
I went looking at some houses last weekend and I thought it was funny that the builders were saying there aren't many lots left and the next stage will increase 30% in price. They claim to be extremely busy, but the sales associates in new homes are as bad as realtors. I know a guy that owns a home building company in Calgary and he tells a very different story about how slow the industry is right now.
Layoffs aren't done yet in AB (in my company anyway) and I doubt 25 basis points on prime will help AB.
I love what this did to the dollar though (for right now anyway) as I have about $15K US I want to change over.