Discussions

since the bank of canada has dropped bank rate 3 times in the last year why does a person applying for a mortgage today have to pay more than over a year ago

Chartered banks and credit unions use the Bank of Canada rate as the very base rate. Then they add a certain percentage on to their own base rate to ensure their profit. Additionally percentage rates are determined by the nature of the loan (term, revolving, mortgage ) the subject of the loan (car, holiday, home purchase), as well as the client’s capacity to repay (salary, savings, net worth) as well as their credit repayment history. If you are shopping around, it is better to get a mortgage broker to do that for you. A broker can also explain more thoroughly how lenders set their rates with respect to your individual circumstances.

Chartered banks and credit unions use the Bank of Canada rate as the very base rate. Then they add a certain percentage on to their own base rate to ensure their profit. Additionally percentage rates are determined by the nature of the loan (term, revolving, mortgage ) the subject of the loan (car, holiday, home purchase), as well as the client’s capacity to repay (salary, savings, net worth) as well as their credit repayment history. If you are shopping around, it is better to get a mortgage broker to do that for you. A broker can also explain more thoroughly how lenders set their rates with respect to your individual circumstances.