RBC Lowers Prime Rate

[Mortgage Made Easy]

RBC lowered its Prime rate to 2.85%, effective tomorrow Wednesday... announcement here (http://business.financialpost.com/2015/01/27/rbc-cuts-prime-lending-rate-to-2-85-from-3-after-surprise-bank-of-canada-cut/)!

Stay tuned for others to follow!

[Mortgage Made Easy]

Here they go...

BMO, TD matched the rate drop to match RBC.

Announcement (http://www.cbc.ca/news/business/banks-lower-prime-lending-rates-1.2933499) . .. I am sure the rest will announce tomorrow or very soon!

[norwestalta]

Do you guys do farm mortgages?

[Mortgage Made Easy]

Do you guys do farm mortgages?

No we do not. Not many lenders do!

Farm Canada Credit is one suggestion... and a local credit union would be the next best bet.

[norwestalta]

Thanks Tim. I'm already with fcc. Looking for other options. Thanks again

[GStyler]

Bouncing around this question to the guys at work, may as well ask here...

Tell me about renegotiating a mortgage.

I'm on a 5 year, 3.69% fixed term. Lets say remaining balance is 250K.
my Maturity Date is May 2016.

Is that too far away to renegotiate?

I don't think it makes sense to do it if I have to pay the penalty myself. Are banks willing to pay the penalty for breaking the mortgage to steal my business from my current bank?

Thanks!

:test:

[Mortgage Made Easy]

Bouncing around this question to the guys at work, may as well ask here...

Tell me about renegotiating a mortgage.

I'm on a 5 year, 3.69% fixed term. Lets say remaining balance is 250K.
my Maturity Date is May 2016.

Is that too far away to renegotiate?

I don't think it makes sense to do it if I have to pay the penalty myself. Are banks willing to pay the penalty for breaking the mortgage to steal my business from my current bank?

Thanks!

:test:

It is too early. If it was within a year maybe... for sure if you are closer to 6 months to renewal.

The penalty will be approx. $2,300 and up... depending on the lender, they will have a higher calculation (banks specifically).

Banks will not pay for penalties but will offer slightly higher rates to cover and recoup the penalty. It is a way that they tell you that they are paying for the penalty. Example, current 5 year fixed is 2.84%... they may offer 3.09% and this way the penalty is covered.

We have lenders that will bury the penalty into the rate...

No free lunches... they make the money back one way or another.

[GStyler]

Right on. Thank you Tim!

I will wait patiently until then.

[Mortgage Made Easy]

Right on. Thank you Tim!



I will wait patiently until then.


You're welcome !

[Jalan]

We renewed with Cibc a few months ago at 2.89

[alacringa]

Weeheeee...when I got my mortgage in April, I went with variable-rate (my brother suggested that the interest rate wouldn't climb 1.5% (the difference between variable and fixed) in 5 years). This makes me quite happy. My already low rate (2.6%) is getting lower.

[Kim473]

Talk in the financial comunity is the bank rate may fall slightly lower down the road.

[dantonsen]

Talk in the financial comunity is the bank rate may fall slightly lower down the road.

A few more little cuts and we will be where japan and europe are for interest rates, sounds like we are going in the right direction ,lol:snapoutofit:

[pdog15]

.... and this is supposed to encourage individuals and governments to live within their means. What nonsense. All this will succeed in doing is to have an increasing debt load for individuals (far to many) who think debt is fine and a way of life. For governments, it will set the path for even more taxes of all kinds as they continue to have spending problems, not revenue problems as well as allowing for increased deficit financing.

Meanwhile, RBC is buying out an American bank for something like $5.4 B. The only ones doing very well in all of this (the big bail out of 2008 and now another drop in prime rate) are the banks and large corporations.

Pretty soon, anyone with bank savings will be paying the banks to store their money (as interest paid on savings accounts drops to virtually zero) while they continue to leverage money on deposit and loan it out to individuals who must have new everything, and right now - regardless of debt. Politicians who can't live within revenues generated are worse than over-spending individuals.

Who knows - maybe the rest of us should just remove all our savings from the bank, spend it, and then go into debt just to keep the wheels rolling. This would be the patriotic thing to do, wouldn't it? The disincentive to save (one might even call it a penalty for saving) has been ingrained in the working 50 + age group and now they have become the decisions makers. They have raised/are raising their own kids to believe that debt is wonderful. After all, when (not if) it all collapses, "we" will just walk away from all of the debt and let those people foolish enough to live within their means and save (like their parents) pick up the tab either directly or indirectly (government). Very sad state of affairs.

Politicians continue to mouth about how individuals should be saving and reducing their debt - all the while devising policies that are encouraging the exact opposite and not practicing prudence with government funds themselves.

[rugatika]

Pretty soon, anyone with bank savings will be paying the banks to store their money (as interest paid on savings accounts drops to virtually zero) while they continue to leverage money on deposit and loan it out to individuals who must have new everything, and right now - regardless of debt. Politicians who can't live within revenues generated are worse than over-spending individuals.

.

http://www.bloomberg.com/news/articles/2015-01-26/owners-of-negative-yielding-sovereign-bonds-say-they-re-no-fools