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Flaherty Makes “The Call” To Mortgage Lenders

April 2, 2013

In March 2013, Canada’s Minister of Finance Jim Flaherty placed a call to banks to ‘avoid a race to the bottom’ on mortgage rates in Canada – lenders were advertising 5 year fixed rate mortgages as low as 2.89%.

After ‘The Call’, the lenders advertising the mortgages rates raised their advertised rates up to 3.08% or higher in some cases.

But was calling on mortgage lenders to stop advertising low mortgage rates the right move for Canadians?

MonsterMortgage.ca senior mortgage agent Kristian Harris discusses the move and other possibilities that might have been better suited to help Canadians keep more money in their pockets, and not their bank’s.