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BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers?

banksters monopolyToday, the actual BANK PRIME rate should be 2.50%, not 2.70%.   What am I talking about?… follow me on this and let’s see if this makes sense.

It’s been a few weeks since the Bank of Canada cut the rate.  I’ve been waiting to see how this would play out… First, let’s get the terminology clear.    Bank of Canada overnight rate, or Key rate as it’s referred to, directly affects the Retail Bank Prime rate and Variable rate mortgages.   This does not have a direct impact on fixed rate mortgages.

Last January, the Bank of Canada Governor, Stephen Poloz, surprised most economists and financial experts when he cut the rate by 0.25% (well, not all experts, I called for a rate cut just a week earlier).
Continue reading “BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers?”

New 2nd mortgage options at 3.50% with no legal fee or appraisal fee!

canadian-money-gift

I’m reposting this article due to the tremendous response and numerous inquiries..  

We recently came across a lender that is offering an unheard of offer.   Secured lines of credit in 2nd position at Prime plus 0.50%.  That’s 3.50% today!   We haven’t seen this sort of offer in quite a while for 2nd mortgages.  Here’s the qualifying details:

  • you have to have good credit
  • you need provable income to qualify along
  • there must be adequate equity in your home.   The product allows you to borrow up to 80% of the appraised value of your home.
  • the appraisal fee and legal fees are covered by the lender (that’s a $1200 savings)!!
  • a small broker fee may apply …. see me for details.

This rate is truly incredible for such a product.  But having the legal fees and appraisal covered is truly amazing! I rarely get this excited about a product but this one has me pumped!   For those that don’t know, most 2nd mortgage options begin at 10% to 12% plus fees.

For those that can’t provide traditional income confirmation, such as self-employed or commissioned employees, there are other options for you.  The rates are higher but there are options.  And for those with slow or poor credit, you also have some options available for mortgage funds.. provided there is adequate equity in your home.   Remember, each situation is reviewed on a case by case basis.  Pricing and cost will vary.

If you are looking for some extra funds or access to a line of credit, this product could be a great option.

Happy Holidays!

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

RBC Q2 earnings hit new record $2.5billion… and they raised their bank fees.. Enough already!

greedy bankerRBC-Bank You gotta love the BANKS.  Putting out forecasts of troubled economic times, too much personal debt, housing bubbles, etc.    They seem to think it’s all bad news….  well, not for them.   They keep posting record profits year after year after year…

Yet, somehow they justify increasing our bank fees....  Well, that was going too far!   Talk about flaunting and rubbing it in our face!   This was probably one of those rare times in history when the normally reserved, conservative, polite Canadians had just about enough!   A major public and political backlash has forced the RBC to retract those fees.

But why did it take so much to for RBC to do the obvious?   I mean, come on.  You jack up fees after you report RECORD EARNINGS?  Hello!?   This is like that commercial for Hotels.com.   Captain Obvious!

RBC HIRES TEMPORARY FOREIGN WORKERS

Remember when RBC hired Temporary Foreign Workers (TFW) to replace existing Canadian jobs?  Check this out… they had their Canadian employees train the TFW and then they fired the Canadian employees!   This was just 2 years ago!

NEWS FLASH!  The BANKS are concerned about shareholder profits.  End of story!   Their loyalty is to the shareholder, not you or I.   And once you understand this, your expectations and outlook will be much different.  You will begin to question things more….. that’s a good thing.   Questions are good… there are only bad answers..  or here’s another saying…  The only bad question is the one you didn’t ask!

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

CMHC increased insurance premiums… again.. but still cheaper than 10 yrs ago.

CMHC Last May, CMHC increased all their insurance premiums.  The move wasn’t really a surprise to industry insiders.  CMHC’s product line has been reduced.  No more rental property mortgages.  No more refinancing mortgages.  No more secured lines of credit mortgages.

That’s a big chunk of business gone.  And when revenues go down for this crown corporation, what do they do?  They do what every reputable govt corp does.  They raise fees  and make the consumer pay more!   (check out my charts below) Continue reading “CMHC increased insurance premiums… again.. but still cheaper than 10 yrs ago.”

Collateral Mortgages… a different 50 shades of grey!

handcuffs In 2010, TD announced they would begin registering ALL new mortgages as a collateral charge.  The sale pitch was that it was good for the consumer.  It would allow TD clients to borrow more, in the future, without having to incur new legal fees.  Yes, that part is true.

But they’ve left out a lot stuff, too!   For years, Mortgage Brokers and other unbiased financial professionals, cautioned the public about collateral mortgages.    And in 2013, CBC Marketplace did an expose on TD and their retail branch’s lack of knowledge and disclosure.   Is this where you want to go for your mortgage?TD

By the way, TD wasn’t the only Bank to go with collateral charge only.   ING made the same move in Dec 2011.  And they used a similar sales pitch.   But my readers have been hip to this and aren’t getting fooled.

The federal govt was pressured into taking action to protect consumers.  In Sept 2014, the federal govt announced ‘more disclosure.  But have the Banks really given us more disclosure?   Continue reading “Collateral Mortgages… a different 50 shades of grey!”

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