Tiny lenders chop rates to grab mortgage customers

Rates have dropped and that means better deals on mortgages. The big banks have dropped discount rates to an average of 2.79% on a 5 year mortgage.

Meanwhile the smaller lenders are hungry for more business so they’re cutting profits to compete on lower rates.

Mortgage Brokers are also taking cuts on commission to compete in the race to the lowest rate:

The rate war is even more intense among mortgage brokers, many of whom are shifting away from the traditional full-service model that saw brokers spending hours working with clients to select the best mortgage and earning hefty commissions. These days, more borrowers are turning to online and “self-service” brokerages that compete on volume, offering less personalized service and sacrificing some of the commissions they earn from lenders in order to discount rates even further.

Not everyone is a fan of the model. Some are worried that with interest rates already so low, brokers are having to dig deep into their commissions to offer meaningful discounts, a model that some brokers argue could threaten the industry as a whole.

“The majority of people don’t like what we’re doing and it’s a troublesome thing for us to digest because ultimately it’s the best for the consumer,” said Jeff Mark, co-founder of Spin Mortgage, an 18-month-old online brokerage that is advertising a five-year fixed rate at 2.49 per cent, well below the typical bank rate, by sacrificing some of its commissions. “We make less money per deal. I don’t know how that isn’t a good thing for the market.”

Read the full article here.

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paulb
Member

New Listings 310
Price Changes 66
Sold Listings 168
TI:12432

http://www.paulboenisch.com

southseacompany
Member
southseacompany

“This Is Where House Prices Are Rising And Falling Across Canada”, Huffington Post

http://www.huffingtonpost.ca/2015/02/17/house-prices-home-sales-canada_n_6700296.html

“Home sales in Canada fell for the third month in a row in January, signalling the likely end of a hot run for real estate as lower oil prices cool the country’s economy.”

“House prices are now falling in about half of the metro areas surveyed by the Canadian Real Estate Association in its latest report. (http://www.crea.ca/canadian-home-sales-slip-further-january)”

“But he, too, expects corrections to hit specific cities, not the overall housing market. Check out where house prices and home sales are falling.”

vangrl
Member
vangrl
@22
Guest
@22

“i doubt rentals in whistler are based on average income there.”

Whistler RE prices and rents and have been declining for 7 years now. Maybe those wages do matter?

Whistler or bust?
Guest
Whistler or bust?

# 23 “Nufio, after this season you can name your price to rent in Whistler!”

Another typical idiot who posts here but has no idea what is actually going on.

http://www.piquenewsmagazine.com/whistler/business-staying-steady-despite-poor-weather-conditions/Content?oid=2639547

@24
Guest
@24

“Steady feed of Chinese can keep Canada’s or at least Vancouver’s RE in tact for generations.”

Wrong. There are less millionaires in China than in Canada and only a fraction of both countries millionaires combined when compared to the US. The US bubble still popped with all those millionaires in the US and an endless waiting list who want to immigrate.

Whistler or bust?
Guest
Whistler or bust?
# 29 Whistler RE prices and rents and have been declining for 7 years now. Maybe those wages do matter? See comment in #30 On the real estate side, 2014 was another positive year. The upward trend in the number of sales over the past few years continued and with the strong buyer demand came a reduction in listing inventory. As indicated on the table below, both trends have been consistent since 2011. Sales to Listings – 2011 to 2014 *Whistler Listing System (WLS) Year # Sales # Listings as of Dec 31 2011 484 687 2012 522 593 2013 595 453 2014 691 378 The total number of sales recorded by the Whistler Listing System in 2014 increased by 15.7% compared to 2013. Total dollar volume value was approximately $539 million, the highest dollar volume since 2007 when it… Read more »
vangrl
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vangrl
@30
Guest
@30

A quick search on Expedia shows hotel rooms in Whistler Village going for under $159 CAD per night in Feb which is their high season. I wonder what they will go for in the summer? Just came back for Santa Monica and paid $400 USD per night for a 4 star hotel during low season. Houses in Whistler and Santa Monica are about the same price.

@32
Guest
@32

Five years after financial crisis, B.C. resort town Whistler still reeling

Although the real estate market in most of Canada has long left the financial crisis behind, Whistler is still picking up the pieces. While Greater Vancouver’s average housing prices have surged 32 per cent since 2007, Whistler’s property prices have tumbled an average of 23.5 per cent from their peak six years ago.

http://www.theglobeandmail.com/report-on-business/five-years-after-financial-crisis-bc-resort-town-whistler-still-reeling/article14328894/

George
Guest
George
@space889: “Very few people today will say their overall life is worse than 20 years ago” I wouldn’t be so sure about that. I know a lot of people who would say their lives were much better 20 years ago, even if you don’t think about the fact they were younger. Life seemed much easier 20 years ago, it seemed easier to get a job, relative to the cost of living my sense is wages were higher, your money lasted longer, working class could afford to rent in Vancouver and weren’t all forced out to Surrey. Overall, Vancouver was a much more pleasant and livable place 20 years ago – ironically more walkable 20 years ago before the city even cared about walkability, you could actually afford to live close enough to work that you could walk. If we did… Read more »
Whistler or bust?
Guest
Whistler or bust?

34 and 35

You really are an idiot. It’s almost as if you are baiting me. I mean no one can be so stupid as to post an article from Sept 2013 to address the current market of anything can they?

As far as Whistler not being Santa Monica? Why there? Its not Paris or Burns Lake either and last I checked hotel rooms are not rents unless you live in them.

Keep it coming simpleton.

Yunak
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Yunak

@33

Police say the thieves are getting away with large amounts of money, jewelry and designer handbags. None of the homes ransacked had residents currently living in them.

Easy come, easy go… Who cares, stolen stuff just changed hands.

West Coast Woman
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West Coast Woman

Why does Canada keep trying to bring in wealthy immigrants (now by extending the deadline for applications under the IVCP) when they have the data showing their previous policy (the IIP) did nothing for Canada economically, other than drive up house prices for those Canadians who actually live here:

http://www.scmp.com/comment/blogs/article/1715970/refugees-earn-more-chinese-millionaires-canada-why-bother-wealth

@37
Guest
@37

“As far as Whistler not being Santa Monica? Why there? Its not Paris or Burns Lake either and last I checked hotel rooms are not rents unless you live in them.”

I think if I was buying a vacation property I would consider hotel rental rates. In Santa Monica buying may make sense. Whistler it clearly does not. Especially in a place with a 4 month season. Hotel rooms will be going for $60 per night in the off season which is 8 months of the year in Whistler. With current hotel rental rates in Whistler only an idiot would buy there. Sorry if you didn’t do your research before buying. Don’t blame me.

Guy Smiley
Member
Guy Smiley
@VanRant – I sure as fuck hope this is the year. And I think we have a very good chance at it. If it is not then I might finally concede a year from now and buy something to the east where homes are also totally overpriced but not nearly in the same multiples of $100k. As for things slowing in N Van though, I think you’re wrong. Nothing but sold signs everywhere I look. Depressing the shit outta me. @Vangrl – Ha! The municipal government doesn’t have the balls to do it but finally we have a tax on empty homes! And it will disperse into the community in a much more direct fashion then an actual tax. PS – Please vote NO! to giving Translink more money everyone. While the public transit system does need more money, voting… Read more »
Whistler or bust?
Guest
Whistler or bust?
@ 40 I think if I was buying a vacation property I would consider hotel rental rates. In Santa Monica buying may make sense. Whistler it clearly does not. Especially in a place with a 4 month season. Hotel rooms will be going for $60 per night in the off season which is 8 months of the year in Whistler. With current hotel rental rates in Whistler only an idiot would buy there. Sorry if you didn’t do your research before buying. Don’t blame me.” OMG this is actually fun. A 4 month season you say? Whistler gets 1.5 x’s the visitors in the summer than the winter. It is much busier in the summer than winter. Crankworx brought in 30,000 people for the joyride finale alone. $60 a night rooms? Maybe at the hostel. The off season would be… Read more »
Son of Ponzi
Guest
Son of Ponzi

Westside Realtor is right.
Sherman Tai is predicting HAM retreat in Richmond and Vancouver.
http://www.google.ca/search?q=sherman+tai+2015&ie=UTF-8&oe=UTF-8&hl=en&client=safari

Best place on meth
Member
Best place on meth

@33

“Police say the thieves are getting away with large amounts of money, jewelry and designer handbags. None of the homes ransacked had residents currently living in them.

Police are asking anyone who notices anything suspicious to write down vehicle descriptions and licence plate numbers and to call 911.”

————————————————————————

Nah, I think I’ll just keep driving.

history
Guest
history

#39

You will probably already notice this from experience, Canada* brings in uber wealthy Chinese to drive up RE and put you out of your suburban Van neighbourhood, as a means to Drive Down fertility rates. Sorry no house for you to fuk and raise a family.
* secret org. at the UN actually tasked with demographic transition. They are busy in lots of places esp. the ME and Ukie.

Best place on meth
Member
Best place on meth

Hong Kongers demonstrate how mainlanders should be treated.

http://www.businessinsider.com/r-commie-loving-mainlanders-targeted-at-hong-kongs-top-university-2015-2

Oddly though, nobody calls them racists.

ostritch
Member
ostritch

How is 2.49% a drop? I got 2.45% in October.

ostritch
Member
ostritch

Sorry. 2.79%. Got 2.45% in October.

Son of Ponzi
Guest
Son of Ponzi

Thieves targeting empty HAM monster homes in Richmond Is normal.
But rats moving in and gnawing the place up, that’s not kosher.

Real History
Guest
Real History

Re#$45

You will probably already notice this from experience, Canada* brings in super low interest rates and CHMC mortgage subsidies to drive up RE and put you out of your suburban Van neighbourhood, as a means to Drive Down fertility rates. Sorry no house for you to fuk and raise a family.
* secret org. at the UN actually tasked with demographic transition. They are busy in lots of places esp. the ME and Ukie.