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thirdlittlepig
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Topic Author
Posts: 1643
Joined: Fri Jun 20, 2008 12:00 pm

Banks playing Chicken; RBC blinks

Tue Feb 07, 2012 5:29 am

Rbc has just raised its rates !!!!!40 BASIS POINTS!!!!! just like that. The nerve of them, without even asking "Mother May I?" Maybe the banks have had it with this approach, maybe they just see some future risk in lending in Canada's real estate environment. Will be interesting to see who if anyone follows suit. Do you think mortgage payers will begin to feel uncomfortable as mortgages come up for renewal? This is how banks hold people up for ransom, which of course is what they are entitled to do. Great system, eh?
 
Taipan
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Posts: 3574
Joined: Fri May 30, 2008 11:24 pm

Re: Banks playing Chicken; RBC blinks

Tue Feb 07, 2012 12:51 pm

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Last edited by Taipan on Sun Aug 11, 2013 3:11 am, edited 1 time in total.
 
red_lantern
Real Estate Talker
Posts: 705
Joined: Wed Sep 26, 2007 11:45 pm

Re: Banks playing Chicken; RBC blinks

Tue Feb 07, 2012 10:31 pm

Yes it's a sign of the times, the banks will be increasing the mortgage rates, there will be fewer buyers and prices will ultimately come down!
Hurray!!! Bubble has burst!
 
eyesthebye
Real Estate Talker
Posts: 5863
Joined: Tue Jan 06, 2009 2:53 pm

Re: Banks playing Chicken; RBC blinks

Wed Feb 08, 2012 7:01 am

RBC will retreat when no other bank blinks. I'll give them 3 weeks.
the cure for higher prices is moving to a destination with lower prices
 
vanpro
Real Estate Talker
Posts: 1863
Joined: Fri Sep 04, 2009 12:32 pm

Re: Banks playing Chicken; RBC blinks

Wed Feb 08, 2012 7:14 am

eyesthebye wrote:
RBC will retreat when no other bank blinks. I'll give them 3 weeks.


TD just "blinked" and follows RBC by terminating special 2.99% 5 yr rate early and hiking rates generally:

http://business.financialpost.com/2012/ ... als-early/
 
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jesse1
Real Estate Talker
Posts: 5086
Joined: Mon Feb 18, 2008 12:51 pm

Re: Banks playing Chicken; RBC blinks

Wed Feb 08, 2012 8:10 am

TD just "blinked"

Mumblings afoot to increase that insurance cap AT ALL COSTS. Oh my I would not want to be the Finance Minister right now.
There is no shame in overpaying

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