Just over a week ago BMO executives had issued a warning to mortgage brokers, letting them know that they were going to beef up their mortgage sales force and focus on capturing market share. BMO is looking to kick their growth into high gear in response to feeling the effects of a sluggish market. In this case, their bite was worse than their bark. BMO is once again offering their 5 year fixed closed mortgage at 2.99%.
The Bank of Canada announced this morning that interest rates will remain unchanged for the 11th consecutive time over the past 15 months. The last time the BOC made a change to the overnight lending rate was in September 2010 with a moderate increase of 0.25 per cent. The news is really no news at all, given that nearly all industry professionals and top economists were anticipating no change. But what should be of interest to consumers is the justification behind the decision. Here’s why the Bank of Canada is keeping interest rates where they are.
The ease in which Canadians can get their hands on borrowed funds is astonishing. When I sat down to write this piece, I wanted to talk about the newest Statistics Canada report on Canadian debt levels, which are extraordinarily high. As I started writing my phone rang and the conversation that ensued blew my mind. I was experiencing first hand how easy it is to get into debt.
Canadian fixed mortgage rates are heading to record lows. RateSupermarket.ca, Canada’s mortgage rate comparison website, saw a drop in fixed mortgage rates this week and is expecting the trend to continue.
Last year, there was a big government crackdown on credit card companies in Canada. These rules followed a host of similar rules in the US. It created a new era of more legislation around borrowing in North America, and a real sense that consumers just aren’t doing enough to protect themselves, so governments are stepping in. So what impact are these rules having?