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Mortgage mess on 60 Minutes
- Thread starter ITcomputer
- Start date
dt_toronto_geek
Superstar
"House of Cards" was a very good piece. I finally got my head around what the subprime mortgage financial crisis really is, and how it came to be. It's frightening how so many levels of greed and corruption can lead to such massive financial disaster, and perhaps recession.
avatarreb
Active Member
This mess has pretty much trickled into everyone trying to get a new/renew fixed mortgage...
Have you seen the Mortgage spread (the difference between bond yields and fixed rate mortgages) at major Canadian Banks lately!? With each bank of canada and subsequent prime cuts, the spread seems to be growing.
e.g. 5 year bond yield at ~3.5%... TD's posted rate as of today 7.39%. That's a 3.89% spread, and it was around 2.5 for last few years. Hot Canadian Real Estate Market + High Spreads = Bank Profits.
Have you seen the Mortgage spread (the difference between bond yields and fixed rate mortgages) at major Canadian Banks lately!? With each bank of canada and subsequent prime cuts, the spread seems to be growing.
e.g. 5 year bond yield at ~3.5%... TD's posted rate as of today 7.39%. That's a 3.89% spread, and it was around 2.5 for last few years. Hot Canadian Real Estate Market + High Spreads = Bank Profits.