It’s the end of another work week and that means it’s time for another Friday Free-for-all!
This is our regular end of the week news round up and open topic discussion thread. Here are a few recent links to kick off the chat:
–Mother of all stock market corrections
–Alternative lending on the rise
–OECD slashes Canadian outlook
–Poloz signals delay in rate increase
–Empty home tax
–Variable rates will soar
–Sold as percentage of inventory data
–Canadians buying ‘too much car’
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
CCEC Credit Union is a vancouver-based lender.
Their CEO has the delightful name of “Ross Gentleman” and is interviewed over at BNN where he says that the Vancouver housing market is in a bubble and it’s not if, but when it bursts:
He says they are seeing a number of people ‘trolling’ lenders looking for financing on speculative purchases.
He calls the upper end of the market potentially more volatile and says that CCEC is committed to more conservative lending and tends to focus mainly on primary residences.
Last week when the Bank of Canada announced their surprise rate cut none of the big banks seemed to be in a rush to announce lower lending rates on mortgages.
We asked which will be the first lender to lower mortgage rates and now we have the answer:
RBC is the first to cut mortgage rates as bond yields plunge.
Royal Bank, the country’s second-biggest lender by assets, offered a five-year fixed rate of 2.84 per cent on Jan. 24, down from 2.94 per cent last week, according to rate-tracking website Ratespy.com. That’s below RBC’s posted rate of 4.84 per cent. The bank also trimmed its three-, seven-, and 10-year rates, according to CanadianMortgageTrends.com, an industry news website.
Race to the bottom or just a good time to renew?
After yesterdays Bank of Canada rate cut we’re seeing lots of articles about what this means for the housing market.
Reasonably enough economists are predicting a dip in mortgage rates after this cut, but so far the big banks don’t seem to be in a hurry.
However, TD Bank was quick to announce Wednesday it will maintain its prime interest rate at three per cent, noting that factors beyond the central bank influence its rates.
“Not only do we operate in a competitive environment, but our prime rate is influenced by the broader economic environment, and its impact on credit,” the bank said in a statement.
And the Royal Bank appeared in no hurry to drop rates either, saying in an email response to a query that “while we don’t have any product announcements to make at this time, we are considering the impact of today’s Bank of Canada decision.”
It was anticipated that the Bank of Canada would move to increase its overnight rate later this year due to an improving economy, until crude prices started to slide and dropped below US$50 a barrel.
Phil Soper, president of realtor Royal LePage, predicted Canadians could be shopping for cheaper mortgages within days.
“It doesn’t take long to react to a policy change like this,” Soper said. “That’s why it’s such a powerful tool.”
Read the full article over at Yahoo.