Comments on: Bank of Canada slashes rates, Big Banks Do Not Follow http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anecdotes and Advice from a First Time Home Buyer Part 9 - Closing Costs http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-138772 Anecdotes and Advice from a First Time Home Buyer Part 9 - Closing Costs Fri, 20 Jun 2008 09:01:33 +0000 http://www.canadiancapitalist.com/?p=931#comment-138772 [...] While financial institutions base their prime lending rates on Central Bank recommendations, they are not obliged to do so. Rate changes have historically not fluctuated by more than a quarter percentage point at a time. [...] [...] While financial institutions base their prime lending rates on Central Bank recommendations, they are not obliged to do so. Rate changes have historically not fluctuated by more than a quarter percentage point at a time. [...]

]]> By: Al http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129682 Al Wed, 23 Apr 2008 17:01:40 +0000 http://www.canadiancapitalist.com/?p=931#comment-129682 And the interest rate on my saving account will go down again. I'm almost ready to just take it out and stuff my mattress. And the interest rate on my saving account will go down again. I’m almost ready to just take it out and stuff my mattress.

]]> By: Keith http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129665 Keith Wed, 23 Apr 2008 14:01:53 +0000 http://www.canadiancapitalist.com/?p=931#comment-129665 RBC reacted quicky. Their special offer for ARM has been updated today to prime -.75. The market hasn't reached this since last summer. ARM has been tightened to prime -.6 overall. RBC reacted quicky. Their special offer for ARM has been updated today to prime -.75. The market hasn’t reached this since last summer. ARM has been tightened to prime -.6 overall.

]]> By: Big Cajun Man http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129663 Big Cajun Man Wed, 23 Apr 2008 13:45:59 +0000 http://www.canadiancapitalist.com/?p=931#comment-129663 Another strong reason to hold your home in a variable rate line of credit? Maybe, but only if you can withstand possible fluctuations too. So far I have been lucky, so far! --C8j Another strong reason to hold your home in a variable rate line of credit? Maybe, but only if you can withstand possible fluctuations too. So far I have been lucky, so far!

–C8j

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129660 Canadian Capitalist Wed, 23 Apr 2008 13:29:39 +0000 http://www.canadiancapitalist.com/?p=931#comment-129660 Here's a comment from Don Drummond, Chief Economist at the TD Bank in today's Ottawa Citizen: "The message is we shouldn't naively think that it's an automatic decision. Banks like any other business do face costs of funds and those costs of funds are not behaving in line with what is happening at the Bank of Canada." Here’s a comment from Don Drummond, Chief Economist at the TD Bank in today’s Ottawa Citizen:

“The message is we shouldn’t naively think that it’s an automatic decision. Banks like any other business do face costs of funds and those costs of funds are not behaving in line with what is happening at the Bank of Canada.”

]]> By: Million Dollar Journey http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129654 Million Dollar Journey Wed, 23 Apr 2008 12:42:14 +0000 http://www.canadiancapitalist.com/?p=931#comment-129654 Once one bank lowers their rate to match the rate cut, then the rest will follow. Once one bank lowers their rate to match the rate cut, then the rest will follow.

]]> By: Nicolas http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129543 Nicolas Wed, 23 Apr 2008 02:56:54 +0000 http://www.canadiancapitalist.com/?p=931#comment-129543 Keith, our good friends at Canadian Mortgage Trends found the article online. The way I see it, one thing was clear, at least in Quebec: The first one to lower rates will drag all others in. Otherwise the "publicity" would be quite bad for the "bad guys who will not lower their rates". And as this is a very competitive market, no one would risk such publicity. And as Desjardins is a major player there, it probably has some kind of leverage against the banks since their rate is the same in the whole country (I woulld hope) Keith, our good friends at Canadian Mortgage Trends found the article online.

The way I see it, one thing was clear, at least in Quebec: The first one to lower rates will drag all others in. Otherwise the “publicity” would be quite bad for the “bad guys who will not lower their rates”. And as this is a very competitive market, no one would risk such publicity.

And as Desjardins is a major player there, it probably has some kind of leverage against the banks since their rate is the same in the whole country (I woulld hope)

]]> By: Michael James http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129498 Michael James Wed, 23 Apr 2008 01:37:39 +0000 http://www.canadiancapitalist.com/?p=931#comment-129498 Nice post. The same topic caught my eye: <a href="http://michaeljamesmoney.blogspot.com/2008/04/mortgage-interest-rates-dropping.html" rel="nofollow">link</a> I think the reason why banks haven't been lowering their rates is because they perceive there to be greater than usual risk in making loans right now. It's not as bad as in the US, but risks in Canada are higher than usual. I think the spread between the Bank of Canada rate and mortgage rates was going to go up. If the Bank of Canada hadn't lowered its rate, then mortgage rates (and rates for other types of loans) would have gone up. Minimal competition doesn't help. Nice post. The same topic caught my eye: link

I think the reason why banks haven’t been lowering their rates is because they perceive there to be greater than usual risk in making loans right now. It’s not as bad as in the US, but risks in Canada are higher than usual. I think the spread between the Bank of Canada rate and mortgage rates was going to go up. If the Bank of Canada hadn’t lowered its rate, then mortgage rates (and rates for other types of loans) would have gone up. Minimal competition doesn’t help.

]]> By: NeverStopBuying.com http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129482 NeverStopBuying.com Tue, 22 Apr 2008 22:57:36 +0000 http://www.canadiancapitalist.com/?p=931#comment-129482 Desjardins did it and all big banks did it after TD cut at 5:06 pm today Desjardins did it
and all big banks did it after TD cut at 5:06 pm today

]]> By: Keith http://www.canadiancapitalist.com/bank-of-canada-slashes-rates-big-banks-do-not-follow/#comment-129475 Keith Tue, 22 Apr 2008 22:04:43 +0000 http://www.canadiancapitalist.com/?p=931#comment-129475 Nicolas, what is your source? Nicolas, what is your source?

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