Comments on: Banks don’t match Bank of Canada’s cut http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: MM http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-163026 MM Thu, 23 Oct 2008 21:15:42 +0000 http://www.canadiancapitalist.com/?p=1357#comment-163026 Check your variable rate mortgage agreement wording. Mine says "This will change with OUR Mortgage Prime Rate". That means instead of dropping 3/4% I expect mine will increase the 1% that my bank has raised THEIR mortgage prime rate. I bet all the banks have the same wording in their agreements because i checked a few of their websites and they all use that wording with their posted rates. Check your variable rate mortgage agreement wording. Mine says “This will change with OUR Mortgage Prime Rate”. That means instead of dropping 3/4% I expect mine will increase the 1% that my bank has raised THEIR mortgage prime rate. I bet all the banks have the same wording in their agreements because i checked a few of their websites and they all use that wording with their posted rates.

]]> By: Forone http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160699 Forone Mon, 13 Oct 2008 21:51:53 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160699 On the other hand, because Cdn banks do have to fight for capital, for the first time in years I was able to actually negotiate with charter bank staff for a better rate on rollover of a GIC, by comparison with ING and my main RRSP GIC holder Cambrian. I used to do it all the time, but have been stonewalled since the 1990, with a charter bank "take or leave it" policy about posted rates. Anybody with five digits to lock into a GIC in these perilous times should be shopping rates and playing hard-to-get. On the other hand, because Cdn banks do have to fight for capital, for the first time in years I was able to actually negotiate with charter bank staff for a better rate on rollover of a GIC, by comparison with ING and my main RRSP GIC holder Cambrian. I used to do it all the time, but have been stonewalled since the 1990, with a charter bank “take or leave it” policy about posted rates. Anybody with five digits to lock into a GIC in these perilous times should be shopping rates and playing hard-to-get.

]]> By: TCT http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160604 TCT Mon, 13 Oct 2008 16:08:27 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160604 The Bank cut was not meant to help consumers or to invite them to buy more (even though it's a direct impact of an interest cut). They actually want to improve the liquidity in the market and enable banks to be able to get their day-to-day financing. The Bank cut was not meant to help consumers or to invite them to buy more (even though it’s a direct impact of an interest cut).

They actually want to improve the liquidity in the market and enable banks to be able to get their day-to-day financing.

]]> By: Redfly http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160184 Redfly Sat, 11 Oct 2008 12:24:11 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160184 Scotia, BMO and RBC have now cut their rates by a further 25bps. Others by 15bps. Shame on Manu for playing around. I have a vrm and when I opted for it rather than fixed, I knew I was taking some risk. I should get the reward for my risk when the overnight rate drops just as I will get hit when it rises. IMO the banks should follow the overnight rate when setting prime and if they need to recap, they should be adding points to vrm's going forward, not messing with existing loans. How are borrowers to make any decisions when the information they have at the time of borrowing is not necessarily as it appears? Scotia, BMO and RBC have now cut their rates by a further 25bps. Others by 15bps. Shame on Manu for playing around. I have a vrm and when I opted for it rather than fixed, I knew I was taking some risk. I should get the reward for my risk when the overnight rate drops just as I will get hit when it rises.

IMO the banks should follow the overnight rate when setting prime and if they need to recap, they should be adding points to vrm’s going forward, not messing with existing loans. How are borrowers to make any decisions when the information they have at the time of borrowing is not necessarily as it appears?

]]> By: John http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160171 John Sat, 11 Oct 2008 09:27:17 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160171 The banks do not need to follow the Bank of Canada. The banks also should also think of the consumers interest and should not pass any extra cost to them. John <a href="http://www.jobsearchdigest.com/investment_banking_jobs" rel="nofollow">Investment Banking Jobs</a> The banks do not need to follow the Bank of Canada. The banks also should also think of the consumers interest and should not pass any extra cost to them.

John
Investment Banking Jobs

]]> By: Craig’s Linked List » Blog Archive » Bankroll Reversal http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160100 Craig’s Linked List » Blog Archive » Bankroll Reversal Fri, 10 Oct 2008 23:02:52 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160100 [...] Bankroll Reversal October 10, 2008 4:02 pm Craig business, canada, usa How’s this for irony? As the U.S. banks become more nationalized banks in Canada are nowbecoming more independent. [...] [...] Bankroll Reversal October 10, 2008 4:02 pm Craig business, canada, usa How’s this for irony? As the U.S. banks become more nationalized banks in Canada are nowbecoming more independent. [...]

]]> By: Bob http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160060 Bob Fri, 10 Oct 2008 19:56:45 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160060 Xenko, Believe me the minute there is a rate up by the central bank, Manulife has it changed on the website in 24 hours. The last serveral rate cuts the website and HELOC was updated in 24 hours as well. It has nothing to do with being impatient. They were trying to make a cash grab. Xenko,

Believe me the minute there is a rate up by the central bank, Manulife has it changed on the website in 24 hours. The last serveral rate cuts the website and HELOC was updated in 24 hours as well.

It has nothing to do with being impatient. They were trying to make a cash grab.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-160036 Canadian Capitalist Fri, 10 Oct 2008 17:20:19 +0000 http://www.canadiancapitalist.com/?p=1357#comment-160036 gene: The Canadian banks are an oligopoly. I wouldn't say they are a cartel or colluding with each other but cut-throat competition is certainly lacking. It's certainly better to own these banks than be their customers. Bob: It's great that Manulife matched the other banks with a quarter point cut. I'm not happy that the banks didn't match the BoC cut but I'm not surprised either. These banks are behaving like any business -- when their borrowing costs go up they pass it on to us. gene: The Canadian banks are an oligopoly. I wouldn’t say they are a cartel or colluding with each other but cut-throat competition is certainly lacking. It’s certainly better to own these banks than be their customers.

Bob: It’s great that Manulife matched the other banks with a quarter point cut. I’m not happy that the banks didn’t match the BoC cut but I’m not surprised either. These banks are behaving like any business — when their borrowing costs go up they pass it on to us.

]]> By: Xenko http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-159994 Xenko Fri, 10 Oct 2008 14:25:55 +0000 http://www.canadiancapitalist.com/?p=1357#comment-159994 I'd say it is more likely that you are just too impatient. It takes a while for the bureaucracy at some banks to get their rate dropped. I know for savings account rates, it takes some time before they reflect any changes. I’d say it is more likely that you are just too impatient. It takes a while for the bureaucracy at some banks to get their rate dropped. I know for savings account rates, it takes some time before they reflect any changes.

]]> By: Bob http://www.canadiancapitalist.com/banks-dont-match-bank-of-canadas-cut/#comment-159992 Bob Fri, 10 Oct 2008 13:40:10 +0000 http://www.canadiancapitalist.com/?p=1357#comment-159992 The squeaky wheel gets the grease. We called and emailed Manulife Bank saying that we were outraged that they were making a cash grab. I am sure that many Manulife One customers did the same thing, because I checked their rate and they have at least matched the major banks with a .25% cut. I still think we all shoul have got the full .50% cut. We are all in this together and need all the help we can get. The squeaky wheel gets the grease.

We called and emailed Manulife Bank saying that we were outraged that they were making a cash grab. I am sure that many Manulife One customers did the same thing, because I checked their rate and they have at least matched the major banks with a .25% cut. I still think we all shoul have got the full .50% cut.

We are all in this together and need all the help we can get.

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