RBC Goes Below Prime...???

[luxome]

February 08, 2010

RBC Goes Below Prime

RBC RBC will become the first Big 5 bank in more than a year to advertise a variable-rate mortgage under prime rate.

The company just announced it’s cutting its “special offer†variable rate to prime – 0.10%. The remaining big banks will probably follow suit soon.

RBC’s new rate is mostly a game of catch-up. More deeply-discounted variables have been available from other lenders and brokers for several weeks now.

Even more interesting, RBC said it’s raising its Homeline HELOC rate (for new customers) back up to prime + 0.75%! RBC led the market back in October when it cut its secured HELOC rate down to prime + 1/2%.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/02/rbc-goes-below-prime.html

 

[X2 Buyer]

actually...I have known a friend just got the variable for prime - .2 from RBC recently

 

[TorontoMike$$]

I saw Prime -0.3 today! 1.95%

 

[taal]

If your already on contract with RBC (closed variable) and don't want to cancel, is there any way to take advantage of these rates? Threaten to cancel / ask nicely? Or is there not much that can be done.

 

[Kevin86]

If your already on contract with RBC (closed variable) and don't want to cancel, is there any way to take advantage of these rates? Threaten to cancel / ask nicely? Or is there not much that can be done.

There is an option to swich to Fixed/Closed while those rates are low. Fixed/closed rates may start going up in the next few months. If you want to stay with variable and want the current discounts, I don't think RBC will do that. They usually have this in the agreement that only option the homeowner has to switch to fixed/closed.

Having said that, if some knows of any strategic negotiation technique that can be used to get more discounts while staying with variable, I'll be interested in knowing that too!!!