Back in May, Finance Minister Jim Flaherty told the Globe & Mail that aggressive rate sales were “something we discouraged.”
He said he told the banks, “My expectation is that you will not compete to the bottom on interest rates.” Doing so could over-stoke the national debt fire, suggests the Department of Finance.
But officials have done little to stop bank competitors from pushing ultra-low rates.
As we speak, numerous other sources (brokers, credit unions and wholesale lenders) offer that same 2.99% rate, with fewer restrictions. The government’s distaste for aggressive rate promotion is therefore working in favour of bank rivals.