Saturday, October 25th4.6°C
23888
23129

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




Recent Trending




Today's Market
S&P TSX14543.82+56.99
S&P CDNX805.45-3.15
DJIA16805.41127.51
Nasdaq4483.715+30.923
S&P 5001964.58+13.76
CDN Dollar0.8901-0.0003
Gold1231.20+2.10
Oil81.02-0.73
Lumber336.40+6.80
Natural Gas3.631+0.009

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.39+0.23
Copper Mountain Mining2.03-0.05
Colorado Resources0.145+0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.445+0.035

 



23631

FEATURED Property
1818890259 - 2001 Hwy 97
3 bedrooms 1 baths
$89,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


23091