Hubert 2-5 yr GICs rate drop | Hubert Financial | Discussion forum

With so many others recently lowering their rates, it was bound to happen at Hubert Financial as well. But even with these new lower rates, their Term Rates are still about the best in the business.

We 'may' see them doing more rate reductions in the near future ... their HISA @ 2.50% could be next. Time will tell.

Glad I got in on Hubert's 4 Yr. Term last week, at the old rate of 3.55%.

Rick said
Funny how when the BoC raises rates, all the FI's, especially the big 5, are right on the bandwagon and raise mortgage rates literally overnight. Well the BoC hasn't moved interest rate since Oct, yet savings rates seem to be falling steadily across multiple FI's.  

I think you will find that mortgages are following the BoC/prime rate and savings/GICs are following the bond market. Both those markets are obviously inter-connected and can't stray too far from each other for long, but over the past winter the BoC rate has been static while bond rates have been diving

It's undoubtedly true in this case that depositor rates are following the bond rate, but Rick makes a good point as we are so often told that GIC rates are tied to mortgage and other domestic loan rates.

Seems to me that mortgage rates were already very low and that they should not be taken even lower because this will encourage more people to take on mortgages that, later on, they may not be able to afford. No doubt there is some complicated reason that economists have worked out in opposition to that, but they did not prevent the last recession.