There are dozens and dozens of articles and blogs on this subject already in existence...so why in the hell would we post another one?
Simple - because you'll be able to understand ours.
Here's the low down.
Banks and other Financial Institutions (like Credit Unions) borrower from the Bank of Canada...when they've depleted their internal source of funds - namely Consumer Bank Accounts and Investment Accounts - yes those ones...the ones you PAY Bank and Servicing Fees on.
The Bank of Canada lends money at what we refer to as the PRIME interest rate - or the Overnight Interest Rate.
Currently that rate is .50% - YES...you read that right - it's 1/2 of 1.00%!
This PRIME rate is nothing more than a "measuring stick" of the Canadian Economy and Consumer Spending...when consumers are spending - the rate goes up. When consumers are not spending - the rate stays the same or goes down.
Consumer spending is down right now - price of oil, European Union and the PIGGS crisis (google it), etc..
So - the Bank of Canada says,
"We gotta make the price of money cheaper for consumers so we have to redue our prime rate."
...they do this in anticipation that the BANKS (RBC, CIBC, SCOTIA, TD, BMO, PC, CREDIT UNIONS, TANGERINE, B2B, CFF, etc, etc, etc) will follow suit and ALSO reduce their PRIME rate accordingly in order to BENEFIT THE CONSUMER TO INCREASE SPENDING TO BALANCE OUT THE ECONOMY.
Well we have some bad news for you - the Big Banks have given the Bank of Canada AND the Consumer (that's you and I by the way) the mighty "F$%& YOU!"
Because they are greedy and you are nothing more than a SLAVE TO THE BANK!
What can you do?
STOP BORROWING MORTGAGE MONEY FROM THEM! STOP BEING THEIR SLAVE!
Every time you blindly borrower from a Bank - you give them more power. Power they have abused.
Not to mention - they still overcharge you! They don't care about you - they have 12 Million Dollar Bonuses to pay out to their shareholders...and they can only get that by selling HIGHER PRICED MONEY TO THEIR BLIND CONSUMERS!
When it comes to anything at all about mortgages - Call FOCUS - we have access to Cheaper Money from Better Lenders who actually do want to benefit the Consumer.
Our service is Free and we are the BEST THERE IS AT WHAT WE DO!
Google us - go on - you'll see. Our customers LOVE US!
In the mean time - here's a link to a recent article on this very subject. Enjoy.