The days of mortgage wars are over.
Two weeks ago, Flaherty and the federal finance department publicly complained after BMO dropped its five-year mortgage rate to 2.99% from 3.09%.
Flaherty then thanked the country’s big banks for not matching BMO’s move, says Canadian Press. This message reinforced finance officials’ stances against growing debt levels in Canada. They don’t want banks to lower mortgage rates and push up real estate prices across the country.
What’s more, both TD and RBC raised their residential mortgage rates shortly after, effectively ending any new race to the bottom.
Read: Canadians predict rising mortgage rates
After being similarly pressured, CP says Manulife withdrew a recent, promotional mortgage rate cut. Its bank, owned by Manulife Financial, had cut its five-year fixed mortgages to 2.89% from 3.09%.
Read: 2 reasons mortgage rates are artificially inflated
The company issued a statement, saying: “After consulting with the Department of Finance, Manulife Bank has withdrawn the promotional campaign and reverted to our previous posted rate.”
So, as mortgage rates start rise and as housing markets continue to shift, it will become increasingly important for advisors to help their homebuyer clients.
Whether they’re first-time or experienced buyers, they may find the mortgage process complicated and stressful. This means you can help them both better manage their debt and avoid common house-hunting mistakes.
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