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Email this10:09 am
October 12, 2022
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Duca is offering gic rate of 5.5 through brokers for 5 y and at the same time offering 5.2 mortgage fixed 5 y. How can they do that? Gic >mortgage?
11:03 am
March 30, 2017
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if only they would offer 5y direct at 5.5%.
Offering thru broker at 5.5 means their actual funding cost is closer to 5.75 which makes it even more senseless. The only reason to make it sensible is their loan rate to their business clients is a lot more than 5.75%
11:19 am
April 6, 2013
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Don't assume that five-year residential mortgages are the only loans the bank or credit union is using the five-year GIC money out for.
canadian.100 shared what Scotiabank does with some of its five-year GIC funds.
The negative spread indicates that DUCA is likely not keeping the five-year residential mortgages it originates. Instead, DUCA is likely flipping the residential mortgages to a buyer, like Concentra Bank or a mortgage fund. Afterwards, DUCA would collect a fee to service the mortgages for the investor buyers.
12:23 pm
May 20, 2016
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Interesting, 5 year GIC @4.5% on its website. https://www.duca.com/rates
12:46 pm
April 6, 2013
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That 4½% rate is for $500 minimum.
The 5½% rate for a DUCA 5-year GIC through Fiscal Agents is for $25,000 minimum.
5:53 pm
March 4, 2019
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Is the 5% gic through brokers a cashable gic though like the direct from Duca one?
8:29 pm
April 6, 2013
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The 5½% DUCA 5-year GIC through Fiscal Agents is not cashable. The 4½% 5-year GIC in DUCA's rate page, via DUCA's branches, is not cashable either.
That 4½% DUCA Flex80 GIC is cashable after 12 months. But, there is a penalty for cashing early, before its maturity in 80 months: The rate is reduced to 3½%.
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