Canadians are being screwed again. Bank of Canada rate cut: mortgage not coming down

[one.of.a.kind]

"The Globe and Mail’s Streetwise reported Wednesday that TD Canada Trust may not reduce its prime rate. (TD sent me a statement this morning confirming that it is not changing prime rate “at this time.”)"

http://www.theglobeandmail.com/glob...ot-bring-down-mortgage-costs/article22574714/

 

[AJstar]

"The Globe and Mail’s Streetwise reported Wednesday that TD Canada Trust may not reduce its prime rate. (TD sent me a statement this morning confirming that it is not changing prime rate “at this time.”)"

http://www.theglobeandmail.com/glob...ot-bring-down-mortgage-costs/article22574714/

My understanding is the 1/4 point Bank of Canada rate cut is the 'overnight rate' and not directly tied to 'prime lending rates'.
The prime should drop,but they will stall a few weeks.
Shorter term mortgages may well drop a tad in the coming weeks.
Longer term money is more corralated with bond rates.
So a 5 yr and under mortgage rate may drop, but longer terms may not.

 

[HEYHEY]

Canadians are idiots and they're doing a fine job of fucking up their own lives without the banks interference.

 

[happ]

The ones being screwed are the ones forced to fund mortgages to deadbeats at little margin.

 

[ClassAct]

How are the rates on GICs these days?

 

[zefroggy]

Get a mortgage broker and stopped being ripped off by the big 5.

 

[fuji]

My understanding is the 1/4 point Bank of Canada rate cut is the 'overnight rate' and not directly tied to 'prime lending rates'.
The prime should drop,but they will stall a few weeks.
Shorter term mortgages may well drop a tad in the coming weeks.
Longer term money is more corralated with bond rates.
So a 5 yr and under mortgage rate may drop, but longer terms may not.

Yes, but the banks borrow at the overnight rate and lend at prime, so a cut in the overnight is generally followed by a cut in the prime rate.

 

[AJstar]

Yes, but the banks borrow at the overnight rate and lend at prime, so a cut in the overnight is generally followed by a cut in the prime rate.

Quite right.
Yes the banks will take the extra profit for a few weeks and just maybe will pass it on to the sheeple.

 

[Dave in Phoenix]

But I'm thrilled it resulted in a further decline in the loonie! Not quite back to .65 US like when I started going to Canada but down to about .85. Hopefully will stay down when I return in May!

Are strong $US hurts our exporters and reduces investment gains in foreign stocks/ funds. However, for Canada it should help your exports (but the oil glut is killing your - and our - oil sector of course).

 

[Insidious Von]

The ones being screwed are the ones forced to fund mortgages to deadbeats at little margin.

Wow I'm agreeing with my good friend happ. Dumb move, this will only encourage the stockpiling of more consumer debt. Those of us who keep a cushion of cash for emergencies are being screwed.

 

[lomotil]

Who has been screwed by the Libor whore?

 

[pusher69]

OP

Before you go on ranting about why the mortgaga rates has not followed the BOC (Bank of Canada) rate drop... understand how the BOC andd the tier 1 and tier 2 banks operate in Cananda and don't just rely on some beat reported that does not how the system works.

The overnight rate that was cut, is the rate that the BOC charges the banks when they borrow money (Cash) and inject it into their banking system as consumers deposit/withdrawl cash from each bank. All banks in Canada must maintain a minimum cash flow and if they dip below, they must borrow Cash from another bank or the BOC.

 

[pusher69]

Get a mortgage broker and stopped being ripped off by the big 5.

LOL... who do you think underwrites the loan? a broker?
End of the day, if you are a vested customer of your primary bank...they can match the broket rate or beat it. Do the leg work and ask if they are willing to match.

Why do you think you see all these ads from each of the Banks trying to get you to bring your portfolio over to their bank?

 

[Leafs85]

WRONG!
The best rates you will get is from a mortgage agent. You are talking to someone who is working with over 35 plus lenders including the big name banks. They see all the rates and which one is having a promotion that month. Whatever you get at a bank you would also get from the mortgage agent. Do you think the banks care that you been a client for ten plus years...... Maybe if you have millions in their bank but have the normal clients.



QUOTE=pusher69;5153186]LOL... who do you think underwrites the loan? a broker?
End of the day, if you are a vested customer of your primary bank...they can match the broket rate or beat it. Do the leg work and ask if they are willing to match.

Why do you think you see all these ads from each of the Banks trying to get you to bring your portfolio over to their bank?[/QUOTE]

 

[zefroggy]

LOL... who do you think underwrites the loan? a broker?
End of the day, if you are a vested customer of your primary bank...they can match the broket rate or beat it. Do the leg work and ask if they are willing to match.

Why do you think you see all these ads from each of the Banks trying to get you to bring your portfolio over to their bank?

First, the big banks do not underwrite all the mortgages. You will get get lower rates with direct lenders (i.e. Computershares http://www.computershare.com/ca-en/Pages/default.aspx). I don't have time for the legwork. I go call my broker and ask him what is the best rate today. Then he secures the rate with my bank (Scotia) with the terms I want. He gets his commission and I get my rate. No time to waste on haggling with banks. The poor bank employee did not understand what hit her the last time and had no clue how to get the proper approvals from the head office.

This is how the financial industry works with everything. You can either spend time building relationships with your bank or haggling with them or use a third party who did it for you and will get a better deal because they have the relationship and get something (money) out of it.

 

[pusher69]

Leafs85

Read what I wrote!
Any vested client of a bank (they have multiple products with large capital investments), the banks will assess and either match or beat a mortgage broker quote to keep that client happy and from that client moving their portfolio.

I have never used a mortgage broker to finalize any of my mortgages and each time I have gotten a lower rate. I show my FI my quotes from 3 other source and they know what will keep me.

Mortgage brokers have to work harded and do most of the leg work to secure the client, whereas a bank pays their mortgage advisor a salary, hence cost of doing business.

 

[pusher69]

First, the big banks do not underwrite all the mortgages. You will get get lower rates with direct lenders (i.e. Computershares http://www.computershare.com/ca-en/Pages/default.aspx). I don't have time for the legwork. I go call my broker and ask him what is the best rate today. Then he secures the rate with my bank (Scotia) with the terms I want. He gets his commission and I get my rate. No time to waste on haggling with banks. The poor bank employee did not understand what hit her the last time and had no clue how to get the proper approvals from the head office.

This is how the financial industry works with everything. You can either spend time building relationships with your bank or haggling with them or use a third party who did it for you and will get a better deal because they have the relationship and get something (money) out of it.

Where did I say "... all mortgages are underwritten by a bank" ???

Borkers just do the leg work and at the end still deal with a bank or a private lender (if you have bad credit and will charge higher rate).

 

[SkyRider]

Banks do not borrow from the BOC. They borrow money from you and me. If the banks reduce mortgage rates they will also reduce the interest they pay on deposits and GICs to savers.

 

[Big Sleazy]

Who has been screwed by the Libor whore?

Anybody with a variable rate mortgage, credit card, or debit card......

BS

 

[FAST]

Anybody with a variable rate mortgage, credit card, or debit card......

BS

Anybody who doesn't pay off their credit card each month, deserves to get screwed,...!!!

FAST