Tag Archives: Banks Compete

Are Non-Bank Mortgages Safe?

Posted on October 26, 2012 by

There are dozens of mortgage companies across the Country providing consumers with a broad array of choices.  Although there are only a small number of banks, they dominate the market due to their strong brand names and their vast branch networks.  But that doesn’t mean they’re better. Non-bank mortgage lenders offer mortgages with similar and sometimes better pre-payment privileges, features and benefits.  More importantly they often offer lower mortgage rates.  … Read More →

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Scotiabank Buys ING Direct

Posted on August 30, 2012 by

After a short time on the auction block ING Direct has been gobbled up by Scotiabank for a reported $3.1 Billion.  It’s the largest transaction in Scotiabank’s 180 year history.  Although many of Canada’s big banks were interested in the transaction, Scotiabank was the hungriest to acquire its $30 billion of deposits.  On the heels of the announcement Scotiabank published a high profile letter reassuring ING Direct customers that it … Read More →

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Bank Profits Jump Despite Negative Rhetoric

Posted on August 29, 2012 by

Scotiabank’s profits skyrocket 57% while Bank of Montreal’s profits launch 37% higher in the third quarter.  If anyone was concerned about our Canadian banks’ well-being, they should be consoled by these numbers.  With net income increasing to $2.05 billion and $970 million respectively these solid performing institutions are well positioned to weather the worst of storms regardless of what the doomsayers preach. These results are one more reason why Canadians … Read More →

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ING Direct Up For Sale

Posted on August 7, 2012 by

The Dutch based mega bank ING is putting its Canadian operations up for sale with the likely buyer being one of the existing big 6 Canadian banks.  The large Canadian banks have the means and the expertise to make the most of this profitable business.  The biggest advantage of such a transaction would be lower transaction costs through greater economies of scale, but that would only apply if they could … Read More →

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Where’s the Mortgage Rate War?

Posted on July 30, 2012 by

The summer of 2012 is delivering record low 5 year Government of Canada benchmark bond yields aka the cost of mortgage funds.  If the cost of providing a 5 year fixed mortgage rate keeps dropping you’d expect to see mortgage rates offered to customers dropping as well, but that hasn’t been the case.  In fact BMO Bank of Montreal, the instigator of the last mortgage rate war, is keeping their … Read More →

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BMO’s 2.99% Mortgage Rate “Banks” Profits

Posted on May 25, 2012 by

Bank of Montreal (BMO) was the first of the major banks to release second quarter earnings.  The 4th largest Canadian bank had an impressive 27% increase in net income for the quarter.  However when you dig into the numbers, cost cutting was a major contributor and profit margins were notably lower.  One of the reasons cited for the lower margins was the deep discounted 5 year fixed mortgage rate at … Read More →

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When Banks Compete, You Win!

Posted on March 13, 2012 by

Bank of Montreal set off another “rate-war” by lowering their 5 year fixed low rate mortgage to 2.99%.  There’s something about that number that has people excited.  Not 3%, but 2.99%!  It gets consumers talking about record low rates, but even more exited are the people working for the competition.  Not to be out-done, the competition has to sharpen their pencils and find ways to offer sexy rate offers…preferably something … Read More →

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