CategoryInterest rates

Posted March 2, 2015 Case study

Rate shopping sites…tested again.. and failed again.

A few years ago, I published a study on Rate shopping sites. These sites were gaining popularity with consumers as a place to go if you wanted to get the best rates. And they attracted a lot of attention.

You know the sites… they have catchy ads like ‘shopping for the Best Mortgage rates in Canada’ or ‘comparing Canada’s mortgage brokers for the best rates’.
Hey, who doesn’t want the best rate? These ads work. Canadians were clicking these links to get more info.

Sounds great, right? Yet, it’s not.
Continue reading “Rate shopping sites…tested again.. and failed again.”

Posted February 26, 2015 Bank News

NO SET UP COSTS!! Secured line of credit at Prime plus 0.50%!

A few months ago, I announced a special promotion. A secured line of credit, at Prime plus 0.50% (2.85% plus 0.50% = 3.35%) with NO set up costs. The response has been so overwhelming that I’m publishing this promotion once again.

FREE legal fees and FREE appraisal fees. The Bank is covering both these costs. You pay nothing. $0.00. It’s just that simple. AND, this Bank will go in 2nd position behind your existing 1st mortgage if necessary.

You must qualify, of course. Good credit, stable income, qualify real estate, etc. If you are interested in this product, contact me for details. This is a limited time offer. We do not have an expiry date but it can be terminated at any time.

Brokers and Agents, please do not call. I am not able to share this offer with you. Sorry.

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

Posted February 24, 2015 Interest rates

Will Variable rates increase as Bank Prime drops?

Here’s a warning to all…. Watch out for the BANKS to increase their Variable rate mortgage pricing. History tells us that when the Bank of Canada lowers their Target Rate, and the Bank Prime falls, Variable rate mortgage pricing increases.

If you have a mortgage coming due in the next 4 months, speak with a mortgage broker to get you a rate hold immediately!

Today, you can get Prime less 0.65% on a Variable rate mortgage. That’s 2.85% – 0.60% = 2.20%. THIS PRICE COULD DISAPPEAR! 2.20% is a great rate! No one would argue that. The BANKS are counting on you to be content with that 2.20% rate. On March 4th, the Bank of Canada meets again to set the Target Rate. And all indications point to another 0.25% reduction. Continue reading “Will Variable rates increase as Bank Prime drops?”

Posted January 23, 20155 Comments Consumer Debt

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

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%.

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. Continue reading “TD green or TD GREED?!. as they refuse to lower the Prime rate!!”

Posted January 21, 20151 Comment Bank News

Interest rate surprise? Not to our readers! : Bank of Canada drops key lending rate to 0.75%

Last week, I made a bold statement about interest rates. I said rates will remain low for some time. And they could even decline.

That forecast was met with a certain degree of criticism. Well, no surprise for CanadaMortgageNews.ca followers, the Bank of Canada cut the rate by 0.25% to 0.75%.

This means Variable Mortgage rates will fall by 0.25%. It also means we’ll probably see fixed rate mortgages also fall….. As I predicted.

Stay tuned for more details on this…

http://www.ctvnews.ca/mobile/business/key-interest-rate-unexpectedly-lowered-1.2198493

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