03-27-2020, 08:59 AM
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#1
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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BREAKING Bank of Canada cuts again - to 0.25% - March 27
Breaking News
Bank of Canada cuts another 0.50% off of their policy rate this morning.
Bank of Canada Cuts Rate to 0.25% - Emergency Move
The million dollar question this time is, will lenders extend the drop to consumers and lower Prime from 2.95% to 2.45%?
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03-27-2020, 11:05 AM
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#3
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Quote:
Originally Posted by Ace
Cant wait to hear about how much the lenders increase their mortgage rates due to this
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Hopefully the Prime rate drops... the discounts are pretty much gone from Prime -1.00% .....to -0.15% to +0.25%
The fixed have a settled a little today... might see some slight drops. Still have some good unpublished rates for High Ratio files (less than 20% down payment or switch/ renewals that were insured).
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03-27-2020, 11:43 AM
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#4
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Our Jessica Fletcher
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Quote:
Originally Posted by Mortgage Made Easy
Breaking News
Bank of Canada cuts another 0.50% off of their policy rate this morning.
Bank of Canada Cuts Rate to 0.25% - Emergency Move
The million dollar question this time is, will lenders extend the drop to consumers and lower Prime from 2.95% to 2.45%?
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Considering the situation we're in, wouldn't the government penalize lending institutions if they choose not to extend the discounts to their customers? Isn't the entire point of the BOC doing this, a measure to prevent further bleeding of our economy and citizens, which would be completely neutralized should the banks choose not to discount lending rates?
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03-27-2020, 01:04 PM
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#5
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Quote:
Originally Posted by The Fonz
Considering the situation we're in, wouldn't the government penalize lending institutions if they choose not to extend the discounts to their customers? Isn't the entire point of the BOC doing this, a measure to prevent further bleeding of our economy and citizens, which would be completely neutralized should the banks choose not to discount lending rates?
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Unfortunately, the government cannot force them to pass the discount. They can encourage it but this has happened in the past a couple of times.
The lenders are passing on the drops through their own Prime rate but have also adjusted their lending rates as well. Adjustments in the upward direction.
Fixed rates have risen approx. 0.60%
Variable rate discounts have disappeared pretty much from -1.00% to -0.15%... or 0.00% and even +0.25%.
This occurred back in 2008-09 as well.
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03-28-2020, 09:15 AM
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#6
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Great News for variable rate mortgage holders... RBC, TD have dropped 0.50% so the Prime rate is 2.45% (RBC) and 2.60% (TD).
TD has 2 Prime rates and their Mortgage Prime is 2.60% and the bank Prime is 2.45%
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03-30-2020, 11:24 AM
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#7
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#1 Goaltender
Join Date: Feb 2008
Location: Back in Calgary
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Obviously this is a unique situation, but when do you suspect the Bank of Canada would raise rates? Months after this has resolved or could it be longer?
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03-30-2020, 11:26 AM
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#8
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Quote:
Originally Posted by 3thirty
Obviously this is a unique situation, but when do you suspect the Bank of Canada would raise rates? Months after this has resolved or could it be longer?
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I believe this will take time... might even be a year or more after things stabilize.
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03-30-2020, 06:33 PM
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#9
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First Line Centre
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Quote:
Originally Posted by Mortgage Made Easy
Great News for variable rate mortgage holders... RBC, TD have dropped 0.50% so the Prime rate is 2.45% (RBC) and 2.60% (TD).
TD has 2 Prime rates and their Mortgage Prime is 2.60% and the bank Prime is 2.45%
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TD is stupid - had to be said. Like get rid of your "mortgage prime" already. Talk about ridiculously trying to save face after all these years, just admit you were greedy and thought everyone else would play along.
As much as I'm frustrated by the banks raising rates lately, at least its on new business, what TD did back then was screw all their existing variable rate holders, underhanded IMO
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03-31-2020, 01:27 AM
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#10
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Backup Goalie
Join Date: Jul 2013
Location: Southern Alberta
Exp:
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I just signed a 5 year fixed with Servus Credit Union for 2.55 % . I would have loved to roll the dice a bit or shop around but my wife's business has taken a huge hit here and I would hate to see what we would qualify for in a few months
__________________
"You just got your asses whipped by a bunch of gawddamned nerds" - Coach Harris
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03-31-2020, 10:42 AM
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#11
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Our Jessica Fletcher
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Quote:
Originally Posted by Pliddy
I just signed a 5 year fixed with Servus Credit Union for 2.55 % . I would have loved to roll the dice a bit or shop around but my wife's business has taken a huge hit here and I would hate to see what we would qualify for in a few months
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I was quoted a 5yr-fixed @ 2.62% a week ago at CIBC. I'm waiting to hear back if anything has changed since.
I'm still holding out hope that I can get in at 2.3-2.4%... but will likely re-up in the next week or so regardless.
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03-31-2020, 11:16 AM
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#12
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Quote:
Originally Posted by The Fonz
I was quoted a 5yr-fixed @ 2.62% a week ago at CIBC. I'm waiting to hear back if anything has changed since.
I'm still holding out hope that I can get in at 2.3-2.4%... but will likely re-up in the next week or so regardless.
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Hi Fonz - are you up for renewal? Or purchasing? Either way... is your mortgage insured with one of the insurers like CMHC? If your down payment is less than 20% we can still get 2.29% to 2.39%.
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03-31-2020, 11:27 AM
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#13
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Scoring Winger
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I locked in on a new house a couple weeks ago with Scotia at 2.34 before they sky rocketed. Got very lucky with the timing of my purchase
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04-01-2020, 04:23 PM
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#14
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First Line Centre
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Any idea what RMG is doing with their prime rate? It looks like as of today (April 1) they are still at 2.95% but I thought almost all lenders were at 2.45%
Edit - forgot to add I cant get through to them at all, they used to have 2 hr waits but now I just can't get through at all
Last edited by Calgary14; 04-01-2020 at 04:38 PM.
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04-01-2020, 05:18 PM
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#15
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Scoring Winger
Join Date: Sep 2014
Location: Calgary, AB
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Quote:
Originally Posted by Calgary14
Any idea what RMG is doing with their prime rate? It looks like as of today (April 1) they are still at 2.95% but I thought almost all lenders were at 2.45%
Edit - forgot to add I cant get through to them at all, they used to have 2 hr waits but now I just can't get through at all
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Yes they reduced Prime to 2.95% today but haven’t reduced to 2.45% yet.
Not sure why but each lender has control as to when they decide to change.
The call and email volume is still extremely high.
If you have access to the RMG gateway, you might be able to leave requests in your portal.
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04-03-2020, 01:28 PM
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#16
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First Line Centre
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Update: RMG lowered their prime rate as of today (April 3)
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