Justin Da Rosa is a journalist with Canadian Mortgage Professional.
One big bank has offered an explanation for why its prime rate doesn’t match the Bank of Canada’s overnight rate, but brokers aren’t exactly sold.
Despite rate slashes from conventional lenders, many private mortgage providers haven’t budged on rate and brokers may not buy their reasoning for holding out.
In the wake of falling rates, private lenders may have a tougher time selling clients on higher rates; but not if expectations are properly managed.
The big banks’ decision to lower their prime rates – but not fully match the mark set by the Bank of Canada – was about balancing the economy, according to one bank analyst.
It may seem ironic to some, but many brokers believe offering consumer credit card products is one of the most effective alternative revenue streams a player can add to his business.
The big banks operating in the broker channel aren’t doing themselves any favours by refusing to drop their prime rates, despite some of their competitors already doing so.
A number of the big banks have announced special fixed rate promotions and cuts to their prime lending rate, but what are monolines doing to ensure brokers have a competitive advantage?
One big bank has made a bold rate prediction for the near future but brokers aren’t biting.
Finance Minister Joe Oliver has said he will not interfere with the housing market – or force banks to lower their interest rates, despite the Bank of Canada’s announced rate cut.
The biggest news wasn’t the rate cut; it was the way in which the central bank implemented it – and what it may signify for future interest rates, according to one industry leader.