A number of the big banks have announced special fixed rate promotions and cuts to their prime lending rate, but what are monolines doing to ensure brokers have a competitive advantage?
“Monolines are definitely showing some super competitive pricing because they know that they have to be competitive. I think I saw today that RBC dropped their ten year posted rate and that’s huge,” Rob Campbell of Verico The Mortgage Wellness Group told MortgageBrokerNews.ca. “That could be a good product for some people, not everybody, but it could be a great product and if guys like First National and MCAP start to drop that down like they were offering a couple years ago, it might be something worthwhile.
“We’re definitely seeing (monolines) up the ante as far as being competitive.”
As for the big banks, Scotia currently has a special offer for a five-year closed term fixed mortgage at a rate of 3.19 per cent, and TD offers a five-year special offer at 3.09 per cent.
RBC, meanwhile, offers a seven year closed mortgage at 3.44 per cent as well as a 10-year at a rate of 3.84 per cent.
The rate wars have certainly ramped up, following the Bank of Canada’s decision to cut its overnight rate for the first time since September 2010, but it may be the big banks that have the ability to offer greater discounts.
“The banks are going to have to really take a bath on mortgages just to get the clients in the door because of all the upsells they can make,” Campbell said.
Justin da Rosa
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