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Canada - 5 year fixed, rate drop coming in next couple days?
Old 04-26-2009, 05:50 PM   #1
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Canada - 5 year fixed, rate drop coming in next couple days?

I'm scheduled to sign some papers for my home's mortgage on Monday for a 5 yr fixed term. But just the other day the bank dropped it's prime rate by 0.25% (after the bank of canada did a rate cut). Their 5yr rate hasnt moved yet, but does anyone think I should try to stall for a few days to see if the rate does go down? Basically the way the paperwork works is that if before I sign there is a rate change, I get the better rate. This is through CIBC in Canada. Anyone know how long it typically takes for CIBC to adjust their 5yr after a prime change?

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Old 04-26-2009, 09:53 PM   #2
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I doubt a 5 year fixed term will drop much, if at all. A variable rate, maybe.

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Old 04-27-2009, 05:54 AM   #3
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Don't hold your breath.

Canadian banks are using the lower BOC rates to improve their margins. I have been told that TD Canada Trust is raising the rate on my line of credit 2.5% and I have impeccable credit.

If it were me, I would sign.
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