BREAKING Bank of Canada cuts again - to 0.25% - March 27

[TimLacroix]

Breaking News

Bank of Canada cuts another 0.50% off of their policy rate this morning.

Bank of Canada Cuts Rate to 0.25% - Emergency Move

The million dollar question this time is, will lenders extend the drop to consumers and lower Prime from 2.95% to 2.45%?

[dirtsniffer]

Wow.

Is it even reasonable that the banks wouldn't lower their rates in response? I know MCAP is taking their sweet time lowering it from the last one.

[jwslam]

IKR?
My bank is still sitting at 3.95 prime according to my mortgage portal.

When it went up to 3.95 on Oct 25/18, there was no hesitation to go up by Nov 1...

[killramos]

Give the banks 48 (business) hours to announce changes, RBC is usually first. Wouldn’t surprise me if it’s not official until Monday/Tuesday

I half wonder if banks will not pass along the full rate, is the extra .25% going to really affect many people’s solvency? Doubtful.

However an extra .25 on all the banks variable loans might help it conserve enough cash to handle a bunch of insolvencies.

[TimLacroix]

This quote is hidden because you are ignoring this member. Show Quote

Wow.

Is it even reasonable that the banks wouldn't lower their rates in response? I know MCAP is taking their sweet time lowering it from the last one.

We are in very odd times... it is possible... MCAP is dropping Prime to 2.95% April 1.

- - - Updated - - -

This quote is hidden because you are ignoring this member. Show Quote

IKR?
My bank is still sitting at 3.95 prime according to my mortgage portal.

When it went up to 3.95 on Oct 25/18, there was no hesitation to go up by Nov 1...

What bank are you with... ? If it hasn't changed yet, it is likely happening April 1.

[pheoxs]

Do you think this will translate at all to the bond market and fixed rates or are those pretty much bottomed out?

[TimLacroix]

This quote is hidden because you are ignoring this member. Show Quote

Do you think this will translate at all to the bond market and fixed rates or are those pretty much bottomed out?

We did see a dip in the bond yield however, the bond yield has not translated into typical rates. Typically the spread is around 1.50% above bond yield... so as of yesterday, they should be around 2.30% for 5-year fixed but they are actually around 2.59-2.69% and higher. Rates have risen in the past 5-7 days.

Today the bond is hovering around 0.54% which with the 1.50% spread... would be around 2.10-2.20%.

NOTE that the cost of borrowing money has increased over the past week or so... which is part of the reason fixed rates have risen and variable rate discounts have disappeared.

[ExtraSlow]

This quote is hidden because you are ignoring this member. Show Quote

Do you think this will translate at all to the bond market and fixed rates or are those pretty much bottomed out?

Aren't governments propping up the bond market with all that stimulus? That'd make bond rates go up, maybe?

[Disoblige]

This quote is hidden because you are ignoring this member. Show Quote

We are in very odd times... it is possible... MCAP is dropping Prime to 2.95% April 1.

Why is MCAP so slow to adjust compared to some other places like Merix, or bigger banks?

They probably will lower to 2.45% by May 1st now, considering how slow they are to adjust on the last one...

[Nufy]

I got my HELOC statement from National Bank today.

Sitting at 2.95 since March 18.

Will see on the next one of they drop it again.

[JRSC00LUDE]

They'd better start dropping rates to suit, they're profiting off our backs for nothing right now as it stands.

[Xtrema]

This quote is hidden because you are ignoring this member. Show Quote

They'd better start dropping rates to suit, they're profiting off our backs for nothing right now as it stands.

At this point, I don't know why we don't nationalize borrowing.

I would be buying a lot more shit if HELOC is 1.25%

[ExtraSlow]

That would truly make it rain.

[dezmarez]

This quote is hidden because you are ignoring this member. Show Quote

I got my HELOC statement from National Bank today.

Sitting at 2.95 since March 18.

Will see on the next one of they drop it again.

This quote is hidden because you are ignoring this member. Show Quote

I got my HELOC statement from National Bank today.

Sitting at 2.95 since March 18.

Will see on the next one of they drop it again.

2009 Historical Prime Rates
2009-01-21 3.00% (Overnight rate was 1.00% at this point)
2009-03-04 2.50% (Overnight rate was 0.50% at this point)
2009-04-22 2.25% (Overnight rate was 0.25% at this point)

2010 Historical Prime Rates
2010-06-02 2.50% (Overnight rate was 0.50% at this point)
2010-07-21 2.75% (Overnight rate was 0.75% at this point)
2010-09-09 3.00% (Overnight rate was 1.00% at this point)

Wasn't until 2015, we saw a new spread, as opposed to the 2.00%....

2015 Historical Prime Rates
2015-01-21 2.85% (Overnight rate was 0.75% at this point)***Didn't pass on the full rate cut, and the 2.20% spread has been in place since***
2015-07-22 2.70% (Overnight rate was 0.50% at this point)


2017 Historical Prime Rates
2017-07-19 2.95% (Overnight rate was 0.75% at this point)
2017-09-13 3.20% (Overnight rate was 1.00% at this point)

2018 Historical Prime Rates
2018-01-24 3.45% (Overnight rate was 1.25% at this point)
2018-07-11 3.70% (Overnight rate was 1.50% at this point)
2018-10-31 3.95% (Overnight rate was 1.75% at this point)

[Xtrema]

Not going to lie, BoC is doing QE 1st time ever.

I think a $100K Corvette C8 is better investment than cash.

Bank economists now expect the Canadian economy to shrink between 10 per cent and 24 per cent on an annualized basis, a recession deeper than the worst of the 2008-09 financial crisis. Many see it as inevitable that Poloz and his governing council will cut the overnight rate to near zero, then start rummaging deeper into their toolbox.

https://business.financialpost.com/n...municipal-debt

[realazy]

https://business.financialpost.com/p...s-surprise-cut

RBC and BNS matched the 50 bps cut. Prime is down to 2.45% for those two.

MCAP really needs to do this faster, it's complete bullshit they they waited till Apr 1 for the change to 2.95%. They better go to 2.45% soon. We have a P-1.15% so this could make it 1.3% for us which is insane.

[JRSC00LUDE]

Now just need TD to follow and both mine are good.

[JfuckinC]

So what does this mean for Mortgage rates? I’m financially inept, sorry for not understanding haha

What would a good mortgage rate be now?

[03ozwhip]

This quote is hidden because you are ignoring this member. Show Quote

So what does this mean for Mortgage rates? I’m financially inept, sorry for not understanding haha

What would a good mortgage rate be now?

I'm getting better with it, talking with @TimLacroix more trying to get more familiar.

[Chester]

This quote is hidden because you are ignoring this member. Show Quote

So what does this mean for Mortgage rates? I’m financially inept, sorry for not understanding haha

What would a good mortgage rate be now?

Is your current mortgage fixed or variable?