Major financing company decides to maintain current rates
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While the Bank of Canada’s recent 0.25-per-cent interest rate increase has sent shockwaves across the nation’s financial system and compelled several major lenders to implement their own hikes, Capital Growth Financial Corporation has announced that it will be going against the grain.
A compelling reason for this is that the Bank of Canada appeared to be a “little hasty” in its decision to raise its rates, “as we are seeing a slowing down in the Canadian real estate market, especially the very hot Toronto and Vancouver areas,” Capital Growth said in its latest release.
“[We rely] on our credit partners for our factoring activities, especially our very popular Realtor commission advances program. But, we have decided not to raise our fees, and match the Bank of Canada’s moves,” the company stated.
“[We] have very good relationships established with our capital partners allowing us to get the most competitive borrowing rates possible, and pass on those savings to our customers. This is also why Capital Growth has the lowest fees in Canada for real estate commission advances,” the company added.
“[We also] understand that as borrowing becomes more expensive, it will slow down home sales throughout Canada. Our Realtor customers will already be feeling the negative effects of the higher interest through higher mortgage rates. We feel that if we raised our fees too, the Realtors will be doubly hurt.”
The financing company said that it is standing by its commitment to helping Canadian housing professionals get their commissions quickly, and “for the lowest price possible,” whether the deals involve “residential, commercial, new builds, open land, leases, or rentals.”
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Too much tightening?
A compelling reason for this is that the Bank of Canada appeared to be a “little hasty” in its decision to raise its rates, “as we are seeing a slowing down in the Canadian real estate market, especially the very hot Toronto and Vancouver areas,” Capital Growth said in its latest release.
“[We rely] on our credit partners for our factoring activities, especially our very popular Realtor commission advances program. But, we have decided not to raise our fees, and match the Bank of Canada’s moves,” the company stated.
“[We] have very good relationships established with our capital partners allowing us to get the most competitive borrowing rates possible, and pass on those savings to our customers. This is also why Capital Growth has the lowest fees in Canada for real estate commission advances,” the company added.
“[We also] understand that as borrowing becomes more expensive, it will slow down home sales throughout Canada. Our Realtor customers will already be feeling the negative effects of the higher interest through higher mortgage rates. We feel that if we raised our fees too, the Realtors will be doubly hurt.”
The financing company said that it is standing by its commitment to helping Canadian housing professionals get their commissions quickly, and “for the lowest price possible,” whether the deals involve “residential, commercial, new builds, open land, leases, or rentals.”
Related stories:
Too much tightening?
