It’s all ado about nothing, according to brokers who don’t believe the big bank’s rate cuts warrant all the media coverage they’re getting, after two big banks make record rate moves.
“I’m already offering clients better than that; for a long time I’ve been offering much better than that. With the Government Issue, it’s basically free competition, so [the banks] can offer whatever they want,” Jerry Schindelheim of Invis MI told MortgageBrokerNews.ca. “I don’t think it will stimulate the economy too much … I don’t think these rate cuts will increase sales. Clients shouldn’t be in the market if they can’t afford the rates prior to the rate cut.”
The Bank of Montreal made headlines Monday when it slashed its five-year fixed-rate mortgage to 2.79 per cent from its previous mark of 2.99 per cent.
TD Bank quickly followed Wednesday by matching the rate.
Earlier this month, CIBC kicked off the fracas by offering a promotional 1.99 per cent four-year fixed for the first nine months before rising to 2.83 per cent.
BMO, of course, is famous for drawing the ire of regulators with its bold mortgage price slashing
, doing so on several occasions
in previous years.