Lender: Forget 2.99. Think 2.84%

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Xceed upped the ante in an increasingly hot game of rate wars Thursday, handing the most qualified broker clients 2.84 per cent on a five-year fixed.

That offer is the result of two moves on the part of the lender: it lowered its prime by 5 bps on its three and five-year mortgages and until Aug. 31, will allow brokers to offer borrowers another 5-bps discount on its Xceed SuperPRIME Mortgage.

The reductions come at a time when the industry is seeing an increasing number of lenders offer 2.99 per cent on a five-year term.

MortgageBrokerNews.ca anticipated another round of the rate wars earlier this month and following the introduction of tighter mortgage rules.

Some brokers were expecting the same heightened competition.

Should an all-out rate war ensue, large banks with more resources would likely hold an advantage over mono-lines and smaller lenders.

Earlier this month, Xceed had already trimmed the rate on that SuperPRIME product to 2.94 per cent.


  • Jim A - Toronto and Durham Broker on 2012-07-28 2:36:38 AM

    Xceed is too funny...First they deal with all brokers...then they collapse...then they decide to come back and deal with a few select brokers...now they are offering 2.84% to sellect brokers....They were funny before and now they are even funnier....Even if I wanted to deal with them I would not.

  • Terrilyn Moore on 2012-07-28 3:16:49 AM

    This is true when I talk with clients and tell them about the product that may be available by other brokers they shy away from it when I tell them the history of xceed. They would prefer to pay a higher rate to a more stable lender.

  • Derek Rowley, RMA on 2012-08-03 1:08:50 PM

    I agree with Jim A with his comment about Xceed and also with Terrilyn Moore. Having said this, here is my take on all of what has been happening and especially with bank road reps playing dirty and the big 5 are still playing dirty but then again this is nothing new. So our mono lenders could capture a larger portion of the market share. For "A" mono lenders, fight back and offer the broker channel the best of everything and I do mean every thing. Give the banks a major taste of their own medicine. It is also time for the insurers to stop showing favortisim to the banks. I had 3 deqals declined by a insurer and when the ckients when to a bank, the same insurer approved all 3 deals. What gives here. It is time that our lending partners increased their arsenal and make everytghibg we as brokers have to offer more appealing. Bank reps are blowing us out of the water and so are the branches. I now have a local CU advertising that they will give $1000 towards legal fees. Is this built in or is it separate money??? Is this showing on the disclosure form????? Is the interest rate ceiling or floor????? The same CU has contaced my clients offering a refinance but done as a chattel.
    To our mono "A" lenders I say step up to the plate and knock the big 5 and the CU back to the ice age. If you do this you will absolutely increase your market share. Fight fire with fire.

    August is now here and so we all need to get geared up for the fall.

    Best to all

    Derek Rowley

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