Bank Of Canada Cuts Interest Rate!

[MacDaddy77]

http://news.sympatico.msn.ctv.ca/abc...economy_081008

I wonder how much of an effect this will have?

[guzzy]

Originally Posted by MacDaddy77

http://news.sympatico.msn.ctv.ca/abc...economy_081008

I wonder how much of an effect this will have?

probably zero but it is a step in the rigth direction. Unforutantely I don't think there is a govt in the world that can fight what is about to happen. The banks have screwed us all. We will get past it though.

[SaprykinPWNSjoo]

yay cheaper mtg payments here I come!!!

[GGG]

Originally Posted by guzzy

probably zero but it is a step in the rigth direction. Unforutantely I don't think there is a govt in the world that can fight what is about to happen. The banks have screwed us all. We will get past it though.

I don't know if the banks have screwed us. As shareholders of Banks and Brokerage either privately or through CPP we have made billions on these scams and have indirectly ecouraged it by pursuing higher and Higher yeilding investments. Really this is more like the Capitalist End Game where the reset button needs to be hit so the cycle can start again. If you get rid of the "Greedy" banks you get rid of capitalism

[Mike Oxlong]

http://www.bank-banque-canada.ca/en/...8/pr08-21.html
Here's another link from the Bank of Canada.

Over the past few weeks just about every lender has been raising their variable lending rates. Lots of lenders used to have Prime less .5 or .6% making your effective rate around 4.15%. Now the best you can find is Prime. Lots of banks are even Prime plus 1.

Hopefully all the lenders drop their Prime rates as well and give borrowers a bit of a break again. Generally they all drop their rates a day or two after the Bank of Canada makes an announcement like this. However these are different times. I expect them to drop Prime but it certainly isn't guaranteed.

As soon as I start getting notices from lenders as to what they are doing I'll post them in this thread.

[photon]

Appreciated, I think I have a mortgage coming up for renewal.

[Dirty Mr. Clean]

It should create more money in the hands for people with open mortgagees and people that are now renewing. This could have a minor impact on customer spending but I think people are more likely to saving it with economic uncertainty.

[Mccree]

http://ctv2.theglobeandmail.com/serv...N/ctv-business

TD to only cut rate by 1/4

[Wookie]

Well, we price our lending on the GOC Bond yields.
2 months ago, we were lending @ 1.70 over for 1 year 2.50 over for 5 year and 2.65 over for 10 year. Now we're @ 2.95/3.25/3.70

That's the spread that we want to lend.

[csnarpy]

I got to love my HELOC right now, when we got it, it was 6.5 or 7%, down to 4.5 - but I hope the other banks go further down and pressures TD to follow suit.

[Incinerator]

what a rip-off...stupid TD...

[csnarpy]

Originally Posted by fotze

Hopefully you are using it for smart things.

Yep, we got this instead of a mortgage. And we put a litte more on it for reno's.

[Mike Oxlong]

http://ca.news.yahoo.com/s/capress/0...ks_prime_rates

Looks like TD isn't the only one only offering a qurter point cut. Seems to be the way all the big banks are going. Even some of the smaller lenders are only passing on a 1/4 point cut. I haven't seen anyone offer the full 1/2 point and I highly doubt it will happen if none of the big banks are.

Guess it's better than nothing.

[Mike Oxlong]

Looks like the big banks are going to give in and pass more of the rate cut on to Canadians:
http://ca.news.yahoo.com/s/capress/0...l/bank_lending

As far as the mortgage market goes it was quite common to get variable rate loans at Prime less .5 or .6

All of a sudden all of those are gone and even getting variable at Prime is tough. Lots of lenders are at Prime plus 1.

I'm curious to see if next week they will again start offering the below prime interest rates.

[Bill Bumface]

So am I completely screwed if my variable Prime less 0.6 or 0.7 or whatever it was is up in January? Is my interest rate going to go up 0.7?

[Mike Oxlong]

Originally Posted by hulkrogan

So am I completely screwed if my variable Prime less 0.6 or 0.7 or whatever it was is up in January? Is my interest rate going to go up 0.7?

It could go up even more than that.
A lender I commonly use used to offer Prime less .6. Right now their best variable rate is Prime plus 1. That works out to 5.5% right now. That's likely 1.7% higher than what you are currently paying.

Things may changes by January when it is time for you to renew but right now a 5 year variable rate is almost as expensive as a 5 year fixed rate.

I'll keep an eye out for anyone that is at least offering Prime on their variable rates but they are few and far between right now.

[Wookie]

Based on today's 10 yr GOC bond yield + my 10 year spread, we're leading @ 7.65%

Business will be slow.

[Incinerator]

Another 0.25% cut by BoC, overnight rate now at 2.25%, next rate announcement is December 9.

http://ca.news.finance.yahoo.com/s/2...rest-rate.html

[photon]

So what's the long term outlook for interest rates? Just pondering if I should lock in some rates into long term mortgages for some rental properties.

[onetwo_threefour]

In the past few days I've seen a few Prime - 0.6% mortgages come through my office. I doubt the approvals are very old, so I think they are still out there. I believe the ones I have seen have been TD, MCAP, and possibly Maple Trust/Scotiabank, bu I won't swear to it. (I'm pretty sure on MCAP, less so on the others).

I will say though, that they are becoming very scarce, and have been for at least a couple of months, most varaiables I see are at about Prime to Prime +1.