Bank of Canada drop rates again

[Mike Oxlong]

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

They have dropped another .5%. This really doesn't leave them much room now. They are sitting at only 0.5%

Hopefully the banks follow suit later today and give those of us in variabale rate mortgages another present.

[Bend it like Bourgeois]

So when does it become reasonable to move the fixed rate mortgage?

Is there a handy calculator for that somewhere?

[DementedReality]

and my lender (once again) only gives us back a portion of the cut. oh well, its still cheap money i guess.

[Bertuzzied]

Come onnnnn 2.5%!!

I highly doubt the banks will follow suit with the .5% cut.

[albertGQ]

Alot of the banks already have said they'd cut their prime the same 0.50%.

At least that's what I thought I heard on 66 CFR

[Rerun]

So would 0.5% be considered the Prime Rate?

[Bertuzzied]

Originally Posted by Rerun

So would 0.5% be considered the Prime Rate?

Consumers follow the bank prime rate which was at 3%.

[loob job]

Canada's major banks appeared ready to play ball with Carney: shortly after the announcement, Royal Bank (TSX:RY), Bank of Montreal (TSX:BMO), TD Bank (TSX:TD) and CIBC (TSX:CM) announced that they would cut their prime rates in step with the central bank.

[Bob]

Originally Posted by Bend it like Bourgeois

So when does it become reasonable to move the fixed rate mortgage?

Is there a handy calculator for that somewhere?

I would also like to know this, but it seems like the banks aren't interested in dropping mortgage rates that much.

[albertGQ]

Originally Posted by Rerun

So would 0.5% be considered the Prime Rate?

This is the bank rate. Traditionally the prime rate was 1.75% higher, but it has been 2.0% lately

[cKy]

We just bought a house in Victoria and our mortgage broker was waiting for today to put in the paper work so we get a cheaper rate, so this works for me! Go crappy economy! Now I just need a job to afford the payments, haha

[Old Yeller]

So the actual prime rate we're looking at (with the banks following suit on the rate cut) is 2.5%?

[csnarpy]

Looked at my line of credit today - 2.5%!

i am lovin my house payments right now!

[ah123]

Originally Posted by Bend it like Bourgeois

So when does it become reasonable to move the fixed rate mortgage?

Is there a handy calculator for that somewhere?

Try this one...

http://www.ic.gc.ca/eic/site/oca-bc....g/ca01817.html

[Slava]

Originally Posted by DementedReality

and my lender (once again) only gives us back a portion of the cut. oh well, its still cheap money i guess.

I haven't seen anything yet...where did you find that?

[DementedReality]

Originally Posted by Slava

I haven't seen anything yet...where did you find that?

its on the customer login page ...

Effective Wednesday March 4, 2009, the Manulife One Base Rate is 3.50%

[DementedReality]

Originally Posted by csnarpy

Looked at my line of credit today - 2.5%!

i am lovin my house payments right now!

and some people have P-1% ... imagine that!

[FLAMESRULE]

Originally Posted by csnarpy

Looked at my line of credit today - 2.5%!

i am lovin my house payments right now!

Just out of curiousity, we have a floating mortgage as well, but we fixed our monthly payments at about a 5.7% interest rate, now that we'll be down to 2% its taking years off our mortgage.

Any good reasons why people have let their payments float (keeping the total term the same), vs fixing the monthly payment and letting the length shorten/lengthen??

We did it to budget easier.

[Bertuzzied]

Originally Posted by DementedReality

and some people have P-1% ... imagine that!

Most of those prime -1% are on variable mortgages. Only 1 person in the entire world has a SLOC at prime -1% and he is on CP.

[photon]

Me?

EDIT: Nevermind, I have prime -0.5% on my lines of credit, not -1%, not sure what I was thinking.