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Bankers sick and tired of the rate wars

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Mortgage Broker News | 30 Mar 2012, 09:00 AM Agree 0
Brokers exhausted by this latest battle in the rate wars will have time to nurse their wounds, with the big banks suggesting they’ve put down their weapons for now, if never really for good.
  • Len Lane | 31 Mar 2012, 03:37 AM Agree 0
    Glad to hear they are sick of and so am I lets all go make some money.
  • Jim Henheffer | 31 Mar 2012, 03:48 AM Agree 0
    Interesting to hear. Especially since I came home yesterday to find a mail out from BMO on my counter notifying me and other homeowners that they have extended their 2.99% 5yr offer again until April 19....
  • Angela Wong-Liao, Invis Inc | 31 Mar 2012, 04:56 AM Agree 0
    I am glad that the banks are coming back to their senses as this is a short term gain long term pain business approach. The big banks are gaining market share in short term and suffering from profit margin loss. In my opinion, I think this business practice can only lead to future real estate melt down, similar to the financial crisis south of the border because a realistic pricing should be around 5% not 2.99%. The current real estate pricing is unrealistically high, some houses sold over 50% of asking price and people are rushing into the real estate market because of fear and the exceptionally low interest rates. The real estate pricing will subsequently going down when interest rates increases, the home buyers who have overpaid their houses plus the interest rates increases when their mortgages matures, these home owners will not be able to afford their mortgages and subsequently resulting in a major real estate bust similar to our partner south of the border.
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