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Mortgage Broker News | 12 Sep 2017, 01:16 AM Agree 0
The Central Bank has been given a failing grade by one of the country’s largest lenders, following a surprise rate hike last week that few industry pundits saw coming
  • James | 12 Sep 2017, 09:49 AM Agree 0
    This is a great example of the collusion between the BoC and the big banks. By not hinting/warning of a rate increase, bank Variable Rate clients did not have time to weigh their options and possibly convert to a fixed rate.
  • Sheryl Dawson | 12 Sep 2017, 10:47 AM Agree 0
    The big banks have incredible lobbying power with the Federal Government. Rate hikes are good for the banks but not for small or medium size businesses or the consumer. There should be a strong "push back" from these groups because the criteria the Central Bank uses to raise rates in the 1st place has "major" economic "holes" in it. Big shareholders (wealthiest 5%) of the banks are cheering while everyone else is "paying the price." And remember all the major banks in Canada are connected to the USA banking system and other banking systems around the world.
  • Peter | 12 Sep 2017, 01:44 PM Agree 0
    Why is nobody talking or taking the big banks to task for keeping the previous reduction to themselves but quickly taking advantage of an increase to raise prime rates.
    In case most have forgotten the BOC lowered the overnight rate twice in early 2015, the banks only reduced prime by 30bps keeping 20bps for profit. TD actually went a step further and created their own "mortgage prime" 15bps higher than all others so in fact they kept 35bps of the 50bps BOC reduction.
    The same thing happened in 2008, the BOC reduced the overnight rate by 50bps but the banks only passed on 25bps of the reduction, keeping the rest for profit.
    The BOC plan for stimulus only works if the banks pass on the reduction, otherwise it only increases their profits.
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