Tag Archives: Banks Compete

RBC Starts Paying Realtor’s For Mortgage Referrals

Ever wonder how a Real Estate agent picks their team?  Well usually they partner with lawyers, mortgage agents, and home inspectors that are experts in their field, professional in their dealings, and can be be trusted to provide top notch service and products.  RBC is trying a different approach.  Royal Bank of Canada (RBC) is offering real estate agents $1,000 for referring first time buyers to them. First time buyers … Read More

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4 Year Mortgages Make a Comeback

It must be Spring time, the mortgage wars are back.  It seems like a repeat of last year with Bank of Montreal (BMO) reducing the rate on their 5 year “no frills” mortgage to 2.99%.  There’s something about a rate below 3% that kicks off a flurry of responses from the competition.  Along with the usual warnings about the added costs of going with a “no frills” option, the banks … Read More

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RBC Raises Mortgage Rates

Rising bond yields have put upward pressure on fixed mortgage rates for the past few weeks and RBC was this first to flinch.  As of today RBC increased its 1 year mortgage rate by .14% to 3.14%; it’s 2 year mortgage rate by .1% to 3.14%; it’s 3 year mortgage rate by .1% to 3.65%; it’s 4 year mortgage rate by 0.1% to 3.09%; and most notably it’s 5 year … Read More

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Save $12,000 on Your Next Mortgage

Mortgage penalties are a necessary evil and should be closely scrutinized when negotiating your next mortgage.  Choosing a mortgage solely based on the interest rate could cost you over $12,000 in future penalties overshadowing any interest savings. Forced to comply with new federal regulations, mortgage companies must now fully disclose their penalty formulas and must provide an on-line penalty calculator. It would be worth your while to submit your mortgage … Read More

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RBC Blunder Benefits Competition

The Royal Bank of Canada (RBC) was recently exposed outsourcing jobs to foreign workers at the expense of Canadian employees. What was especially abhorrent was the fact that they were prepared to lay off existing long term employees in favor of the cheap labour.  The images and tears of the affected employees on national television attracted government attention and called for an immediate response from RBC.  Other than decrying the … Read More

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TD Understands Ottawa’s Position – Give Me A Break!

Ed Clark, the CEO of Canada’s second largest bank supports Jim Flaherty’s recent move to prevent banks from competing on low mortgage rates.  In a statement after yesterday’s annual shareholder meeting Mr. Clark remarked “I think we understand his concern, we’ve been an advocate all along”. In March Mr. Flaherty took the controversial step of contacting 2 of Canada’s banks, warning them against offering low mortgage rates.  Mr. Flaherty was … Read More

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BMO Pulls 2.99% Mortgage Rate

Bank of Montreal (BMO) will raise the rate on its widely publicized 2.99% 5 year fixed mortgage rate in a couple of days.  The “No Frills” mortgage has always carried restrictions including a “no-pay-out” clause, limited pre-payment options and a set expiry date.  The current expiry date is set for tomorrow March 28th, and the bank has made it clear that it will not extend the date. Although the mortgage … Read More

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Flaherty Doesn’t Make Cents

Jim Flaherty is defending his decision to interfere in the mortgage market on the basis that he is preventing Canadians from borrowing more than they can afford.  This is nonsense.  After tightening mortgage rules 4 times in the past 4 years and enhancing the powers of the Office of the Superintendent of Financial Institutions (OSFI) to oversee prudent lending practices, we now have extremely conservative lending practices.  Anybody that still … Read More

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Flaherty Tells Bank to Raise Mortgage Rate

Jim Flaherty had one of his officials call Manulife Bank to voice his displeasure over their latest mortgage rate drop.  As a result, Manulife reversed a published rate drop to 2.89% for their 5 year fixed rate mortgage.  This unprecedented government intervention into the free market is a scary turn of events that threatens the principals on which our Country was built. Anti trust laws prohibit collusion among businesses including … Read More

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Let the Mortgage Rate Wars Begin

The clear sign of a mortgage rate war is when Bank of Montreal (BMO) starts advertising a 2.99% 5 year fixed mortgage rate.  Although current bond yields don’t support such a low mortgage rate we are entering the critical spring season that can make or break a bank’s annual lending target. The tightened mortgage rules have done their job and pushed many potential buyers out of the market and scared … Read More

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