The bank of canada has done it…the bench mark lending rate has risen!

As a lot of us in the mortgage industry knew was to happen the bench mark lending rate has increased which means the prime lending rate te banks charge has increased from 2.25% to 2.50%. This is increase the cost of borrowing for everyone looking to borrow for purchases of small and bid ticket items. But for those looking for a great mortgage product my company’s WOW Variable/Adjustable mortgage is still low at Prime – .60 = 1.90%

I also thought this recent article would be of interest to everyone:

****************************************************************************  After more than a year at a record low level, Bank of Canada Governor Mark Carney raised the benchmark interest rate for the first time since 2007 by one-quarter percentage point to 0.5 per cent.  This is the first time since 2007 that that rate has increased and the Bank of Canada is the first in the Group of Seven to do so since the financial crisis and recession began in 2008.
In a statement Carney emphasized that the increase should not be interpreted as just the first of more to come.
“This decision still leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending and the uneven global recovery,” the central bank said. “Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.”

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And when I read this following article of how the banks’ had profits then you wonder why there needs to be an increase right now in the financial section. It means that it will cost more to borrow for all the small and bid ticket items consumers need. This article is a good read and you should think about it when deciding on whether or not our bank is looking out for our best interest or for theirs?

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Canada’s five biggest banks showed steady profit growth in the second quarter of 2010, to a total of $5.01 billion collectively. The latest quarterly roundup fell slightly short of the $5.09 billion the group made during the first quarter of the year when growth was starting to regain momentum on fewer bad loans and some pickup in mortgages.


On Tuesday, Scotiabank earned record profits at nearly $1.1 billion wrapped up the second-quarter earnings season for Canadian banks with a record profit of nearly. The bank said the profit was a quarterly record and up $225 million or 26 per cent from the same time last year.


Revenue was just under $3.9 billion, up nearly $300 million from the second quarter of fiscal 2009.


“Our results reflect strong contributions from personal and commercial banking and wealth management, as well as the excellent performance of our wholesale business,” Scotiabank chief executive Rick Waugh said in a statement.


More than half of the quarterly profit — a record $584 million — was generated by the Canadian banking operations, which saw growth in residential mortgages, lines of credit and business accounts.


Last week, the Bank of Montreal launched the earnings period with the strongest results, including a quarterly profit of $745-million that was 18 cents per share ahead of analyst estimates.


National Bank also beat predictions with a $261 million profit.
In the latest quarter, Royal Bank posted a $1.3-billion profit .
CIBC posted a $660 million profit that turned around a $51-million loss from a year earlier.


TD Bank more than doubled its second-quarter profit to nearly $1.2 billion.

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I suggest you try to get a firm, like mine, to work fo you and get you the best mortgage out there that is for you not for a banks profit margin.

Feel free to contact me by email at jimamitofski@networthmortgage.com any time or by phone with any questions.

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