Interest rate competition? - to help move the fence sitters.
Last week when the Bank of Canada cut the interest rate, the big banks were not in a rush to cut interest rates, but this week the talk is that the Royal Bank of Canada is the first of the big banks to drop its 5 year fixed rate to 2.84% and it is also cutting the rates for its other fixed rate products.
So, setting up the possibility for ‘interest rate competition’, between financial insititutions.
This gives impetus to buyers who are still sitting on the fence renting, and waiting to buy. Some renters just need a little more confidence in believing that they can take on a mortgage and manage their budget.