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TD green or TD GREED?!. as they refuse to lower the Prime rate!!

greedy banker Yesterday’s rate cut announcement by the Bank of Canada (BOC) governor, Stephen Poloz, caught all Economists by surprise.  The BOC cut their overnight rate by 0.25%.   Historically, and traditionally, this meant that the Bank Prime rate would follow.  Bank Prime rate is 3.00% and we expect it to fall to 2.75%TD.

But HOLD ON!…Today, it’s the BOC governor, Poloz, that will be surprised as TD Bank says they WON’T  be cutting their Bank Prime rate!  The BOC cut the rate to help stimulate the economy.  Businesses borrow commercial funds priced against Bank Prime… and consumers borrow lines of credit and Variable rate mortgages against Bank Prime.

TD’s announcement is a slap in the face to Canadian consumers, businesses and the BOC.  We can recall just one other time in recent memory, when Bank Prime rate did not change with the BOC rate.  That was back in December 2008 when the BOC cut the rate by a whopping 0.75% in an attempt to avoid a major recession.   The BIG SIX BANKS only chopped this rate by 0.50%… Never got a good reason why they did this.. something about uncertain cost of funds at the time…   but they’ve NEVER readjusted the Bank Prime to where it should be….

What ever happened to that extra 0.25% profit margin for the past 6 years?   Anyone asking that question?   Well, maybe here’s an answer..  Have the BIG SIX BANKS reported any losses during the past 6 years?   Or have they reported record earnings?  Yup, record profits almost every year….even during the recession years.   Aren’t you glad you could contribute more to the bottom line? ass kicking

So here we are again… the BOC has made a big move to help Canadians… and the BANKS are finding excuses to NOT cut your rate.   Canadians should be outraged!  This is a kick in the butt!   Come on BANKERS, get with it.  You’ve been given a lower cost of funds for the purpose of passing this benefit over to the public.  Stop wasting time and cut the Bank Prime rate!

My hope and my wish is that the BIG SIX BANKS will stop fooling around and cut the rate quickly.  The longer they wait, the more negative press they will receive.. the less effect the BOC rate cut will have for Canadians!   Step up and make the move…  Perhaps our Minister of Finance, Joe Oliver, will get an informal message over to the BIG SIX BANK leaders to make the change…   Or maybe Canadians will get fed up enough with their Banks to seek alternative financial institutions such as Credit Unions..  ?  stay tuned..!

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Steve Garganis View All

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.

5 thoughts on “TD green or TD GREED?!. as they refuse to lower the Prime rate!! Leave a comment

  1. Good for you Ron. The big Six only exist because of a great pool of us middle class consumers. I am with BMO and wrote a nasty letter to them as if the rate increased instead of decreased it would certainly be reflected in my variable rate mortgage. I am sick of being pushed around by gas prices, food prices, interest rates, salary freezes, bonus cuts, fees for licensing and taxes. Enough is enough!

    • hooray! someone (Mike) says it so clearly. Just renewed our mortgage and shopped around! Good thing I did went with the 3rd option, turned out to be the best! My financial portfolio is somewhat complicated, at least for me when trying to decide on investments and interest rates.Unfortunately, the rep at VFCU didn’t lay out enough options explain how the BOC influences the market and give some advice when moving or renewing investments… I’m NOT an expert in economics and have limited time to follow financial markets so I rely on professionals who can offer knowledgeable, clear advise. VFCU told me they do not give advise and they certainly didn’t offer me much information. Dawn at BS (West Kelowna) was the best. Young energetic, globally knowledgeable, tons of great information! Because I’m a visual learner I found her ability to teach using the computer and displaying charts was just so over the TOP incredible!

    • Absolutely! Glad to say I’m NOT a TD member and if I was I would be moving my accounts Looking at moving over to BNS from VFCU completely after having a chance to interview several options. CIBC would have been my alternate choice.

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