Tuesday, August 19th18.9°C
21790

Others may follow RBC rate cut, but change isn't precedent setting

TORONTO - A move by Royal Bank to slightly decrease its fixed mortgage rates may have would-be homeowners wondering whether other banks may follow suit.

But one expert says that while that's a possibility, it's also not the most important question people should be asking.

RBC (TSX:RY) quietly lowered its rates on several fixed-rate mortgages by 10 basis points over the weekend. It was a small drop to the discounted rate offered by the bank until the end of the month, but one that went against the general trend of rising rates.

Jason Scott, a mortgage broker with The Mortgage Group in Edmonton, says a push to lower rates as big lenders compete for mortgages in the important spring market is possible, but the change simply brings RBC closer to those already being offered by some other lenders.

He also points out that this latest change is unlikely to have the effect major cuts have had in a past — like when the Bank of Montreal lowered its five-year rate to 2.99 per cent and created a price war.

Homeowners trying to get a sense of how rates will impact their mortgage payments, Scott said, would be better served by keeping an eye on the strength of the U.S. economy and changes in bond markets — factors that tend to have a greater impact on interest rates take than any incremental change by one lender.

The Canadian Press


Read more Business News

22942


Recent Trending




Today's Market
S&P TSX15477.17+138.70
S&P CDNX997.566.94
DJIA16919.5980.85
Nasdaq4527.514+19.202
S&P 5001981.60+9.86
CDN Dollar0.9131-0.0011
Gold1295.40+0.30
Oil95.12+0.64
Lumber354.50+1.90
Natural Gas3.853-0.024

 
Okanagan Companies
Pacific Safety0.185-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.200.00
Cantex0.07+0.005
Anavex Life Sciences0.26+0.03
Metalex Ventures0.0850.00
Russel Metals37.22-0.15
Copper Mountain Mining2.77-0.11
Colorado Resources0.17-0.01
ReliaBrand Inc0.077-0.003
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.200.00

 



20304

FEATURED Property
19651662006 Hidden Ridge Place
5 bedrooms 4 baths
$584,999
more details
image2image2image2
Click here to feature your property
Please wait... loading


Going home to a bully!

Finally, after three months in New Brunswick, I am back home in the sunny Okanagan. It is a delight to be home and the lake, vistas, people and climate never disappoint. Like many people however, I...


Managing a business in 40 hours a week

My screen printing business, like many others, started as a one-man operation. It was located in a small building, not much better than a shack, with a telephone, a big table where I ate lunch and (oc...


The emperor's new clothes

The wealth market faces increasing competition and declining product differentiation. The wealth industry is responding to these emerging trends with “new” and “unique” investm...

_





22885


Member of BC Press Council


22814