​Mortgage expert says RBC’s reduced rate has no great consequences

By WM
The Royal Bank of Canada’s move to reduce will not set a new standard for the market, mortgage broker Jason Scott assures his colleagues.  Other mortgage and lending companies have expressed concern at this new development as practitioners tend to follow the RBC’s lead which lowered their  fixed two, three, four, and five-year rates by 10 basis points .  In this case, RBC’s longstanding leadership can cause an industry wide reduction of rates which may be welcome to the home owners but detrimental to lenders. 

 In the CT News report, Scott dismisses the growing anxiety, saying that the general low ratings in the industry makes any decimal-point increase negligible.
He says, “"At the end of the day, whether rates move a decimal one per cent or a quarter of a per cent, the reality is that from a historical perspective we're in a low-rate environment.”

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