9:37 am
December 20, 2016
Home Capital Group is currently under OSC investigation and their stock has plunged.
Home Trust is a subsidiary of Home Capital Group, and the deposit arm of Home Trust is Oaken Financial or Home Bank.
Home Bank and Home Trust are members of CDIC.
How worried should I be about all my Oaken GIC's I bought last year at 2.75%?
9:58 am
December 17, 2016
10:00 am
February 24, 2015
10:12 am
August 4, 2010
Stock price doesn't necessarily mean "solvency danger"! Home may have some mortgages that aren't as well vetted as they thought. That, the fact that a chunk of their originations stream may now be gone, and general non-prime mortgage tightening may force them to rein in their balance sheet, or whatever. But there's a big gap between things like lower stock price or reduced dividends or whatever, and capitalization problems.
It doesn't sound like the OSC thinks it is an ongoing nest of snakes, just that it didn't properly handle disclosure of these 2-3 year old issues, which wasn't fair to stockholders.
10:56 am
October 27, 2013
NorthernRaven said
Stock price doesn't necessarily mean "solvency danger"! Home may have some mortgages that aren't as well vetted as they thought. That, the fact that a chunk of their originations stream may now be gone, and general non-prime mortgage tightening may force them to rein in their balance sheet, or whatever. But there's a big gap between things like lower stock price or reduced dividends or whatever, and capitalization problems.
Agreed, and regardless, that is what CDIC insurance is for. Nothing to worry about here folks.
11:32 am
September 5, 2013
AltaRed said
NorthernRaven said
Stock price doesn't necessarily mean "solvency danger"! Home may have some mortgages that aren't as well vetted as they thought. That, the fact that a chunk of their originations stream may now be gone, and general non-prime mortgage tightening may force them to rein in their balance sheet, or whatever. But there's a big gap between things like lower stock price or reduced dividends or whatever, and capitalization problems.Agreed, and regardless, that is what CDIC insurance is for. Nothing to worry about here folks.
Agreed. But I will expect them to raise the rate a bit more for the compensation of the big mess when renewal.
12:26 pm
October 27, 2013
1:35 pm
December 20, 2016
AltaRed said
Surely you jest? They may lower their rates because they may not be writing as many mortgages.
This is from today's (April 20, 2017) Oaken blast email:
As part of our commitment to making customers the first to know about our rate changes, please note that effective Friday, April 21, 2017, we'll be increasing our interest rates for the following terms:
1 Year GIC - 1.85% (currently 1.75%)18 Month GIC - 1.95% (currently 1.85%)
2 Year GIC - 2.00% (currently 1.95%)
These new rates will be applied automatically for all GICs booked on April 14, 2017 or later.
1:46 pm
December 17, 2016
2:27 pm
October 21, 2013
4:36 pm
December 17, 2016
4:51 pm
October 27, 2013
Top It Up said
Too bad that institutions get crapped on when they raise their rates.
How so? Institutions raise their rates only if they need to do so to attract deposits of a term necessary to match the other side of the ledger. It might be for good reasons, e.g. writing more loans of a specified term, or for bad reasons, e.g. to compenstate for 'lower' financial stability and/or reputation.
5:18 pm
December 17, 2016
10:18 pm
October 21, 2013
1.75% on one year is not competitive, and neither is the new "improved" rate at 1.85. You can get 2.05 at Hubert, and it's cashable.
2.2 has been available for 18 months recently while Oaken languished.
And, as has been admitted, you can do better elsewhere for 2 years as well.
Speaks for itself. No crap or inflammatory language required.
4:54 am
December 17, 2016
You seem to be a little out-of-touch with both rates and terms
From Hubert
ONLY the 1-year is not locked and "you’ll [only] earn an average rate of 2.05% for the year (with compounded interest)" IF NOT redeemed
"Any lasting happiness term deposits you purchase after January 15, 2016 are not eligible for early redemption."
"Any TFSA term deposits you purchase after January 15, 2016 are not eligible for early redemption."
"Any RRSP or RRIF term deposits you purchase after January 15, 2016 are not eligible for early redemption."
EDIT: Hubert dropped their 1-year rate this morning.
7:54 am
September 11, 2013
1:32 pm
October 11, 2015
Although you guys seem calm, i'm a bit nervous:
here's the latest email received from Oaken:
Friday, April 21, 2017
As you may be aware, our parent company, Home Capital Group Inc. has been in the news lately. While these are important issues, we want to assure you that it’s business as usual at Oaken.
As an Oaken customer, you continue to have an experienced team working to help you achieve your financial goals, backed by a financially strong institution. Home Capital is very profitable, and as Kevin Smith, Chair of the Board for Home Capital and Home Trust, said in a press release Friday, the company is extremely well capitalized with solid capital ratios that signify a strong balance sheet. The Company plans to report full results as scheduled on May 3.
I, together with the entire Oaken team, remain dedicated to helping each and every one of our customers.
If you have any questions or require any assistance with your Oaken account, please contact one of our friendly customer service representatives at 1-855-OAKEN-22 (625-3622).
Best regards,
Benjy Katchen
Executive Vice President,
Deposits and Consumer Lending
1:40 pm
December 17, 2016
5:36 pm
October 11, 2015
5:45 pm
December 17, 2016
Hard to determine the length of the process but, I read this, for what it's worth.
GET THE MONEY BACK
If a bank can’t be saved and goes under, CDIC would automatically refund eligible deposits to its customers with the amount that was in their account when the bank closed.
It would take “a matter of days,” says Evenson, the corporation’s director of communications and public affairs, for Canadians to receive their cheques, which they would then be free to cash at another financial institution.
Don't forget, this is an anonymous forum with probably NO ONE actually having gone through the process directly - they'll just be sharing nothing more than urban myths.
Please write your comments in the forum.