Borrowers who took on variable interest rates for their mortgage are irked at how other banks decided not to pass on the full rate cut the Bank of Canada (BOC) launched last week.
The country’s major banks were only willing to decrease rates by 15 basis points compared to the 25 basis point-cut the BOC enacted – a dip to 0.75% from 1%.
While many customers feel that banks are practicing “thievery”, mortgage specialist Ben Gill suggests that those who have a variable rate should email and call their bank to directly complain.
“The reason people took the ‘risk’ and went with a variable was for this purpose,” Gill said.
Finance Minister Joe Oliver earlier tagged the situation as a “private sector decision” of whether or not banks will follow the BOC cut.
The BOC last moved its rate six years ago and the banks eventually followed suit.
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