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Originally Posted by blankall
I agree.
If the rates stay down I expect to see a change in lending rates. Just don't expect to see any banks rushing to make that change.
Another issue is the sub prime mortgages that are rampant. I'm at prime -.9. Quite frankly the banks are not making much profit from me. That rate was given on the assumption rates would rise, which they didn't. So in reality, I'm making money from the while situation and the rate dropping is just fing over the banks.
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That's a great rate. Congratulations for some savvy shopping - I'm at Prime-0.65.
I don't want to be "that guy", but sub-prime doesn't mean under prime in the context of mortgages.
Also another thought in the context of the interest rate cut - I'm thinking that the BoC wanted to see the currency devalued sharply to soften the Oil Price plunge rather than a direct impact on consumer borrowing, since oil prices are traded in USD and the Canadian companies operate in CAD. It also has a direct impact to export trade.