We don’t normally get involved in politics on this site… not unless it can affect mortgage rates, the housing market or the economy…One of the more infamous examples was in 1995 during the Quebec Referendum. Does anyone remember that?
Just before the referendum, a new poll had suggested that Quebecers’ could win a majority vote to separate. This sent the Canadian stock market and the Canadian dollar plunging. You might also remember that the Bank of Canada rate jumped 1.00% over night along with mortgage rates. It’s the single biggest increase that we have ever seen. It forced many of us to lock into a 5 year fixed rate… (something the Banks loved as the 5 year fixed rate product is the most profitable).
I’m not saying this will happen again but there was a report in The National Post that says BMO put out a warning to investors that things could be shaky if Jack Layton and the NDP continue to gain ground in the polls.
Another recent development this week is that a few major Lenders have increased their rates on new Variable rate mortgages. We have seen them go from Prime less 0.75% to Prime less 0.50%. They say it’s due to profitability pressures…. but I wonder if has more to do with the election next week?
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.