CategoryMortgage Rates

Posted January 29, 20153 Comments Bank News

BIG SIX BANKS finally cut Prime rate.. Well, sort of…!

Last week, the Bank of Canada (BoC) cut their overnight rate by 0.25%. The move surprised all the so-called ‘Financial Experts’… (well, not me… As I had suggested rates were likely to drop in the previous week’s article and also in the previous month).

Our BIG SIX BANKS had their own surprise for us. Instead of passing along the usual rate cut to consumers, they sat on their hands and did nothing. In fact, TD Bank felt good about it and made public statements about how their Bank Prime rate wasn’t fully influenced by the BOC rate. (That’s such a load of bull, you can almost smell it coming out of your screens!)

And also last week, the Banks immediately cut the rate they pay you on your savings by that same 0.25%. Continue reading “BIG SIX BANKS finally cut Prime rate.. Well, sort of…!”

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

Posted October 8, 20142 Comments Bank News

Senior Deputy Governor says lower rates are the new normal.

In her first public speech as Senior Deputy Governor for the Bank of Canada, Carolyn Wilkins brought some good news to Canadians with mortgages. Interest rates should remain low for some time….. and we can expect lower rates to be the “new normal”.

Ms. Wilkins went on to say that “the recovery has had repeated false starts and still faces considerable headwinds.” This seems to be the new message coming from the Bank of Canada. And I must say, it’s a refreshing change from the previous high-profile Governor, Mark Carney.

UNPOPULAR COMMENTS

Remember our previous Bank of Canada governor? Mr. Carney earned high praise for helping Canada avoid any U.S. style recession. But in the years leading up to his 2013 departure, his repeated warnings of pending interest rate hikes never materialized. In fact, we now know they were way off. Interest rates went down and have stayed down. Looking back, Carney’s rate hike warnings sounded more like ‘the boy who cried wolf’. Continue reading “Senior Deputy Governor says lower rates are the new normal.”

Posted September 4, 2014 Consumer Debt

News stats..Higher debt, but lower defaults

Saw this article today about higher consumer debt levels BUT lower defaults. Equifax Canada is quoted as saying that consumer debt rose by 7.2% in the second quarter 2014 to $1.45 trillion ,compared with $1.35 trillion from a year ago. This includes credit cards, loans, lines of credits and mortgages.

The average Canadian now has $20,759 in personal debt, excluding mortgages. That’s a 1.5% increase since last year. So that means mortgage debt has risen by around 7%. Here’s a heads up… you will see and hear articles sounding the panic alarm… again.

Well, before we hit that panic button, there was one more stat that we should pay attention to. DEFAULTS. Defaults are at their lowest level since 2008. If higher consumer debt levels and lower defaults sound strange to you, it shouldn’t. I’ll explain… Continue reading “News stats..Higher debt, but lower defaults”