BOC Hits 5% | Page 14 | GTAMotorcycle.com

BOC Hits 5%

Mikedezo44 said:
Thank goodness they are looking out for us.

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Here's the answer to the question asked to Freeland, the federal portion of debt payments is $44B next year, or approx 10% of all federal spending. Canada has about 18M citizens that are net federal income tax contributors -- their average contribution is approx $200/mo each just to pay the interest on Canada's federal debt.
 
Mad Mike said:
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Here's the answer to the question asked to Freeland, the federal portion of debt payments is $44B next year, or approx 10% of all federal spending. Canada has about 18M citizens that are net federal income tax contributors -- their average contribution is approx $200/mo each just to pay the interest on Canada's federal debt.
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Well to be fair, it is balancing itself, that is true. Debt is going up fast, taxes will need to go up to cover debt service. Budget balanced. Citizens took it on the chin but when did he care at all about normal people?
 
nobbie48 said:
Waste of time. She took 1:55 to say the budget will take care of itself.
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Refusing to answer direct and easy to answer questions is grounds for dismissal with cause imo. How many thousands per hour are we paying that group of morons to sit there? She wasted all of their time and refused to ever deliver an answer. Fired. No severance.
 
GreyGhost said:
Refusing to answer direct and easy to answer questions is grounds for dismissal with cause imo. How many thousands per hour are we paying that group of morons to sit there? She wasted all of their time and refused to ever deliver an answer. Fired. No severance.
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Ha. Good luck.
Vote these idiots out of office and their seats will be filled with new idiots before they even get cold..
Voting is like going to prison but you get to pick who's going to rape you in the shower...
Doesn't matter who you pick, you're getting raped..
 
Wow...yet another F-U from the government to home owners coming up on renewal.

www.theglobeandmail.com

Canada’s bank regulator says it won’t relax stress test on mortgage renewals

OSFI says on its website that ‘the new lender must do its own due diligence as it will own the credit risk for an uninsured loan’
www.theglobeandmail.com www.theglobeandmail.com

Let's say I have a mortgage with MCAP (which I do), and their interest rate is 1% higher than, say BMO. I can't go to BMO without a stress test (only for renewal) because now I have to stress test at 9-10%....

I'm ok with keeping stress test for new mortgages, or adding to a mortgage (i.e.: refinance). But for simply continuing on your mortgage...seems like this is a great way to NOT have banks compete to keep your business.

'Oh you don't like our 1% higher than BMO? Go ahead and try to get approved with them in today's environment'.
 
mimico_polak said:
Wow...yet another F-U from the government to home owners coming up on renewal.

www.theglobeandmail.com

Canada’s bank regulator says it won’t relax stress test on mortgage renewals

OSFI says on its website that ‘the new lender must do its own due diligence as it will own the credit risk for an uninsured loan’
www.theglobeandmail.com www.theglobeandmail.com

Let's say I have a mortgage with MCAP (which I do), and their interest rate is 1% higher than, say BMO. I can't go to BMO without a stress test (only for renewal) because now I have to stress test at 9-10%....

I'm ok with keeping stress test for new mortgages, or adding to a mortgage (i.e.: refinance). But for simply continuing on your mortgage...seems like this is a great way to NOT have banks compete to keep your business.

'Oh you don't like our 1% higher than BMO? Go ahead and try to get approved with them in today's environment'.
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This is not much different (in my mind) than when you shop around for a loan and each bank enquiery of your credit drops your rating. How much "shopping" can you do??
 
timtune said:
This is not much different (in my mind) than when you shop around for a loan and each bank enquiery of your credit drops your rating. How much "shopping" can you do??
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They should be doing soft pulls not hard pulls so that shouldn't affect your credit rating but I wouldn't be surprised if some did hard pulls to improve their odds.
 
timtune said:
This is not much different (in my mind) than when you shop around for a loan and each bank enquiry of your credit drops your rating. How much "shopping" can you do??
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I (personally) do a lot shopping when it comes time to renew my mortgage just to keep my current bank honest...and to ensure I'm getting a good deal on mine.
 
mimico_polak said:
Wow...yet another F-U from the government to home owners coming up on renewal.

www.theglobeandmail.com

Canada’s bank regulator says it won’t relax stress test on mortgage renewals

OSFI says on its website that ‘the new lender must do its own due diligence as it will own the credit risk for an uninsured loan’
www.theglobeandmail.com www.theglobeandmail.com

Let's say I have a mortgage with MCAP (which I do), and their interest rate is 1% higher than, say BMO. I can't go to BMO without a stress test (only for renewal) because now I have to stress test at 9-10%....

I'm ok with keeping stress test for new mortgages, or adding to a mortgage (i.e.: refinance). But for simply continuing on your mortgage...seems like this is a great way to NOT have banks compete to keep your business.

'Oh you don't like our 1% higher than BMO? Go ahead and try to get approved with them in today's environment'.
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I kind of agree that stress tests should be on new mortgages and renewals. Stress tests are designed to prevent the borrower from collapsing under debt payments -- allowing a mortgage to be renewed if one can't pass a stress test is no different than originating a mortgage to someone who can't pass -- it's a recipe for failure.

If you can't pass the stress test upon renewal, the best thing to do is sell and resize to something that fits your debt service ability.

In Ontario a lender can commence power of sale 15 days after a missed payment. In most cases, you have 40 days to pay arrears on the mortgage and reasonable legal fees the lender incurred to start power of sale proceedings ($500ish). If that doesn't happen, it's hers to sell - you get whatever is left after the lawyers, tax man, re-estate agents, and the lender gets paid.

Most lenders can get out whole right now if a borrower misses a payment. That could change if the market turns down, so a prudent lender will pull the trigger on a questionable borrower as soon as possible.
 
timtune said:
This is not much different (in my mind) than when you shop around for a loan and each bank enquiery of your credit drops your rating. How much "shopping" can you do??
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Shopping for credit doesn't impact your credit score unless you actually apply for credit.

You can shop loans and mortgages without actually applying. Lenders will evaluate your credit based on an interview before they do a formal credit check. If you are what you say you are, then the loan should proceed as expected. Many will ask for your permission to do a credit check as part of their sales strategy -- they know if you apply for credit and get approved with them, your credit score drops - so the next lender may not offer as favorable terms. This is drilled into car dealer sales people, they always ask you to do a credit app before negotiating a deal.

So shop all you want -- that doesn't hurt your credit.

Don't make a formal application until you have selected a lender.
 
Mad Mike said:
Shopping for credit doesn't impact your credit score unless you actually apply for credit.

You can shop loans and mortgages without actually applying. Lenders will evaluate your credit based on an interview before they do a formal credit check. If you are what you say you are, then the loan should proceed as expected. Many will ask for your permission to do a credit check as part of their sales strategy -- they know if you apply for credit and get approved with them, your credit score drops - so the next lender may not offer as favorable terms. This is drilled into car dealer sales people, they always ask you to do a credit app before negotiating a deal.

So shop all you want -- that doesn't hurt your credit.

Don't make a formal application until you have selected a lender.
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Maybe things have changed but it was a loan guy at a bank that told me that. Perhaps he was trying to intimidate me. Good luck with that, I've beaten down more than one banker.
 
timtune said:
Maybe things have changed but it was a loan guy at a bank that told me that. Perhaps he was trying to intimidate me. Good luck with that, I've beaten down more than one banker.
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Your banker is correct that a formal credit check will reduce your credit score, that happens for a good reason.

Lenders know that borrowers often make multiple applications for credit in order to gain as much credit as possible, not because they are shopping for the cheapest loan. For example, Jim needs a quick $90K :

  1. Jim has a credit score of 700, and applies for a $30K line of credit with RBC. RBC checks his credit with Transunion, and approves Jum for a $30K loc at prime +1, commensurate with Jim's credit score and risk profile. Jim gets time to accept (30-90 days is typical). Transunion assumes Jim will take the credit and drops his score by 50 points (50 is for this example, there is a magic formula for the number). Jim's credit score is now 650
  2. Jim makes another application at TD. TD checks his credit score and approves Jim for $30K @ prime +3 based on a 650 credit score. Transunion see another app so they drop his score by 50.
  3. Jim makes another application at CIBC. CIMC checks his credit score and approves Jim for $10K @ prime +5 based on a 600 credit score. Transunion see another app so they drop his score by 50.
  4. Jim makes additional application at other banks, they checks his credit score and declines credit based on a >550 credit score.
This is how lenders are protected against credit shoppers. Jim was able to arrange $30K at a good rate, another $30K at a slightly higher rate, and $10K at a risky rate -- but that's all the credit he's capable of handling.

The good news is Transunion knows the credit offer will only be open for a limited time, so if any of those offers are not accepted, the points will be returned to his credit score after about 120 days.
 
mimico_polak said:
Wasn't sure where to put this...so here we are...

www.thestar.com

Scotiabank cutting 3% of global workforce, about 2,700 jobs

In a press release, the bank said its fourth-quarter financial results will take a hit of $590 million after-tax.
www.thestar.com www.thestar.com

Never a good sign when banks start laying off large numbers of people.
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I haven't read the link with any attempt to understand the implications. Did they lose money or just not meet profit expectations? In investment terms neither is good.

For the average Joe just keeping one's head above water is tolerable.

Going forward, the real estate picture isn't being painted as rosy. How much of that downturn is mortgages and how will that play out in the next year or two. My money guru says 2024 will suck.

I hope one of the 2700 to be cut is the Nazi pitbull receptionist at their Cloverdale branch.
 
mimico_polak said:
Wasn't sure where to put this...so here we are...

www.thestar.com

Scotiabank cutting 3% of global workforce, about 2,700 jobs

In a press release, the bank said its fourth-quarter financial results will take a hit of $590 million after-tax.
www.thestar.com www.thestar.com

Never a good sign when banks start laying off large numbers of people.
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I guess it depends on the reasons. When I was in IT I worked for a bank and developed a system that automated a manual process. It resulted in at least one person in every branch no longer being required. I didnt ask if there were layoffs after implementation.

I have also had reason to be in a branch a lot in the last year or so. I have noticed one, maybe two tellers when busy, and at least 6 or more 'financial advisors (?)' wandering around. Are there really that many people visiting a branch that need to sit in an office with someone??
 
hdsomeday said:
I guess it depends on the reasons. When I was in IT I worked for a bank and developed a system that automated a manual process. It resulted in at least one person in every branch no longer being required. I didnt ask if there were layoffs after implementation.

I have also had reason to be in a branch a lot in the last year or so. I have noticed one, maybe two tellers when busy, and at least 6 or more 'financial advisors (?)' wandering around. Are there really that many people visiting a branch that need to sit in an office with someone??
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The advisors are sales people pushing people into very profitable products. They don't want anyone to wait at all. If you are there, they want you in a chair to pretend to help you and lock up all your money asap.
 
nobbie48 said:
I haven't read the link with any attempt to understand the implications. Did they lose money or just not meet profit expectations? In investment terms neither is good.

For the average Joe just keeping one's head above water is tolerable.

Going forward, the real estate picture isn't being painted as rosy. How much of that downturn is mortgages and how will that play out in the next year or two. My money guru says 2024 will suck.

I hope one of the 2700 to be cut is the Nazi pitbull receptionist at their Cloverdale branch.
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I’m pretty sure all banks are rolling out “reduction in force” plans already.

They lost a lot of productivity to WFH so so they increased hiring during the pandemic. those folks are back into offices and contact centres where direct supervision and supports increase productivity.

Another issue is a large number of reluctant customers learned how to use telephone and online banking during the pandemic. Turns out a lot of skeptics l grandmas liked it! Less branch staff needed.
 
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