*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[CroFlames]

Originally Posted by kevman

I want to know when the banks are going to give us our .2% back on their lending rates.

In 2014 or so when the BOC rate was 1% and the banks had 3% prime rates the spread was 2%. When the BOC cut their rates .25% in consecutive sessions the banks only provided .15% cuts enlarging the spread to 2.2%. This summer when the BOC rate was 2.5%, the banks had a 4.7% prime rate. With the BOC jump to 3.25% are the banks going to 5.45% or are they finally going back to the historical spread of 2% over BOC rate?

I went to the bank yesterday and they charged me $9 just to access my own money.

Banks are wonderful.

[fundmark19]

Originally Posted by CroFlames

I went to the bank yesterday and they charged me $9 just to access my own money.

Banks are wonderful.

Try paying corporate taxes! Biggest scam out there for fees.

[Acey]

I just bought a condo in the NE and took possession Aug 1, and I took variable because I'm somewhat of an idiot.

My thinking was that since I put a significant amount down such that the mortgage is only $100k, even a massive rate hike isn't all that much to stomach on a monthly basis.

[topfiverecords]

Originally Posted by CroFlames

I went to the bank yesterday and they charged me $9 just to access my own money.

Banks are wonderful.

But imagine storing and insuring your stuff in a storage locker for free but you only need to pay $9 when you want to access it…

[Acey]

What is the actual scenario where it costs $9 to access your own money? Access how? I know a bank draft at my bank is $8 but I don't ever pay anything for regular day to day banking.

[Johnny199r]

Originally Posted by CroFlames

I went to the bank yesterday and they charged me $9 just to access my own money.

Banks are wonderful.

What does that mean?

[Derek Sutton]

Originally Posted by topfiverecords

But imagine storing and insuring your stuff in a storage locker for free but you only need to pay $9 when you want to access it…

And the storage company renting our your stuff and pocketing the profits, only to **** you up the *** when you want to go retrieve your own stuff.

[The Fisher Account]

Originally Posted by Johnny199r

What does that mean?

He paid his monthly banking fee

[Sidney Crosby's Hat]

Originally Posted by CroFlames

I went to the bank yesterday and they charged me $9 just to access my own money.

Banks are wonderful.

I live in the US now. If you have multiple accounts, there's no easy way to transfer from one bank to the other. It's crazy. I either have to swallow a sizable transfer fee (on both ends!) which usually would cost me like $25-40 total or I physically have to write myself a cheque and walk to one of the branches or the other and deposit it. Then wait 1-3 days to be able to access it.

Meanwhile, in Canada I can just send myself an Interac e-transfer and the funds are immediately available.

[Winsor_Pilates]

Originally Posted by Sidney Crosby's Hat

I live in the US now. If you have multiple accounts, there's no easy way to transfer from one bank to the other. It's crazy. I either have to swallow a sizable transfer fee (on both ends!) which usually would cost me like $25-40 total or I physically have to write myself a cheque and walk to one of the branches or the other and deposit it. Then wait 1-3 days to be able to access it.

Meanwhile, in Canada I can just send myself an Interac e-transfer and the funds are immediately available.

What about Venmo?
I have no idea how it works, but all the Americans I know use it

[shermanator]

Finally my insistence on taking a fixed rate mortgage is paying off. People who bought when the market was hot and took a variable rate mortgage are in for a lot of trouble...

[FlamesPuck12]

Originally Posted by Sidney Crosby's Hat

I live in the US now. If you have multiple accounts, there's no easy way to transfer from one bank to the other. It's crazy. I either have to swallow a sizable transfer fee (on both ends!) which usually would cost me like $25-40 total or I physically have to write myself a cheque and walk to one of the branches or the other and deposit it. Then wait 1-3 days to be able to access it.

Meanwhile, in Canada I can just send myself an Interac e-transfer and the funds are immediately available.

I have multiple accounts and I have no problems (or fees) transferring between accounts. Most banks in the US have free bank transfers between your own accounts. What banks are you using?

[Sidney Crosby's Hat]

Originally Posted by FlamesPuck12

I have multiple accounts and I have no problems (or fees) transferring between accounts. Most banks in the US have free bank transfers between your own accounts. What banks are you using?

Trying to transfer from M&T Bank to RBC Bank (USA) or vice versa.

EDIT: I just found it! "Bank to Bank transfer" -- thank you, you really helped simplify my life! haha

[Sidney Crosby's Hat]

Originally Posted by Winsor_Pilates

What about Venmo?
I have no idea how it works, but all the Americans I know use it

Venmo, you could do it if you had two Venmo accounts (but I think you'd need two phone numbers). Then you could "pay" yourself before transferring to the other account, but that still takes from 1-3 days.

[powderjunkie]

Originally Posted by shermanator

Finally my insistence on taking a fixed rate mortgage is paying off. People who bought when the market was hot and took a variable rate mortgage are in for a lot of trouble...

Yup, for the last few years there has been WAAAAY more room for rates to go up than any further down. We bought 2 years ago and I seriously considered going 7 years (2.64%) instead of 5 (2.29%)...ultimately I think I calculated that renewal rate would need to be a fair bit higher at the 5 year renewal to end up ahead with 'cheaper' years 6&7, and that we'd save at least $5k after 5 years to use against the principal, which would offset a steeper renewal.

Variable could work well if you diligently use the short-term 'savings' against the principal as frequently as possible, but I doubt many people do that. It's especially tough to find excess cash during the first term since there are a lot of other settling in costs at the start, too, but I may consider it at renewal.

[The Fonz]

Couple important days this week

Tues, 20th - Canada CPI release @ 8:30am. They're forecasting 7.3%. Last release was Aug 16th, 7.6%.

Weds, 21st - US Federal Reserve meeting, and expectation is a 75bps interest rate increase will be announced

[Slava]

Originally Posted by The Fonz

Couple important days this week

Tues, 20th - Canada CPI release @ 8:30am. They're forecasting 7.3%. Last release was Aug 16th, 7.6%.

Weds, 21st - US Federal Reserve meeting, and expectation is a 75bps interest rate increase will be announced

Well, that 75bps might be 100bps. I wouldn’t say that 75 is the expectation…there are a lot of 100bps expectations at this point.

[DoubleK]

Originally Posted by Slava

Well, that 75bps might be 100bps. I wouldn’t say that 75 is the expectation…there are a lot of 100bps expectations at this point.

100 bps hike would be the Fed policy mistake everyone is worried about.

[Slava]

Originally Posted by DoubleK

100 bps hike would be the Fed policy mistake everyone is worried about.

Well it’s interesting because most of the mistakes they make (historically) are on the way down. That said, rate hikes take a while to work through the system. Raising too much might seem ok today and in ~12 months the impacts are really felt.

[Weitz]

Is cheap money even driving inflation at this point?