Tagbank of canada rate cut

Posted March 5, 20202 Comments Bank News

Rate Cuts and Pending Deals – A quick note

As the dust starts to settle on yesterday’s Bank of Canada rate cut, here’s some clarification on what happens next.

To all my pending clients or clients with something on the go, your rates will be automatically adjusted downward.

For new clients, prospective purchasers, or people that want to take advantage of these falling rates, don’t hesitate to reach out to my office today. I am happy to discuss how you can take advantage of this.

Your best interest is my only interest.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted July 22, 20172 Comments Consumer Debt

Banks pass on rate hikes but not the savings.. Shame on the BANKS!

On January 2015, the Bank of Canada cut the prime rate by 0.25%. But the BIG SIX BANKS didn’t cut the Prime rate as they normally do. Instead, they waited a week… tried to justify why they couldn’t cut the rate… and finally caved in and cut it.. but ONLY by 0.15%.

That’s right, they pocketed the remaining 0.10%. And in case you haven’t heard, the BIG SIX BANKS have been posting record profits, year after year after year after year after year. In 2016, the 5 most profitable corporations were:

RBC
TD
SCOTIABANK
BMO
CIBC

Continue reading “Banks pass on rate hikes but not the savings.. Shame on the BANKS!”

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 February 3, 2015 Mortgage News

Record low Bond yields means even lower fixed mortgage rates

Fixed mortgage rates are tied into Govt of Cda bond yields. As the yields go done, so does the fixed mortgage rates.. well, usually.. more on that later..These bond yields have hit all-time lows in the past week… Yesterday, they were as low as 0.55%... To put that into perspective, the 5 yr bond yield is lower than the Bank or Canada overnight rate, which now stands at 0.75%. Another historical event. That almost never happens.

Check out these 2 historical charts to compare the Bank of Canada rate from 1935 to Dec 2014 and 5 year Govt of Cda bond yield from 1980 to Dec 2014….

If you’re wondering what this means for you, a Canadian consumer, it means mortgage rates should go even lower. Institutional investors are pricing in a further Bank of Canada rate cut at their next schedule meeting on March 4th, 2015. Continue reading “Record low Bond yields means even lower fixed mortgage rates”

Posted January 21, 2015 Mortgage News

Bank of Canada Rate cut is positive news… don’t listen to fear mongers.

FEAR..! They say fear motivates us to do things we shouldn’t. If you’ve been reading the News Headlines for the past several weeks, you’ve been hammered with RATE HIKE FEARS! Everyone was saying rates were gonna go up.

It wasn’t just speculation, it was a foregone conclusion. Almost factual! There were headlines even reporting how much of an impact these new ‘higher rates’ would affect our lives, our budgets, our house values, our savings, etc. We saw so-called ‘Experts’ recommending we lock into long term Fixed rates! There was one articles telling us we should consider selling out homes! I mean if you didn’t know better, you would think the sky was falling!

Panic was starting to set in for thousands of Canadians. I was getting calls from concerned consumers asking if they should be doing anything with regards to their mortgage, their investments, and other personal finances. Continue reading “Bank of Canada Rate cut is positive news… don’t listen to fear mongers.”