CALGARY, Aug. 22, 2017 /CNW/ - Borrowing money just became more expensive. The Bank of Canada recently raised interest rates and all the major lenders followed suit, matching the 0.25% increase. The impact is being felt across the board from home mortgages, car loans, business loans, or lines of credit. From a business' perspective, this makes them less profitable.
One financing company is taking a bold step and bucking the trend. Capital Growth Financial Corporation relies 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.
Why did we decide to do this?
Firstly, 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.
Secondly, we understand that as borrowing becomes more expensive, it will slow down home sales throughout Canada. Our Realtor customers will already be feeling the negative affects of the higher interest through higher mortgage rates. We feel that if we raised our fees too, the Realtors will be doubly hurt.
Thirdly, we feel that the Bank of Canada was a little hasty in raising interest rates now, as we are seeing a slowing down in the Canadian real estate market, especially the very hot Toronto and Vancouver areas. The Canadian Real Estate Association (CREA) has reported that average home prices are down 10% from a high of April 2017. In addition, personal private debt has grown about 20% over the last 5 years. As housing prices fall, and personal debt is at record levels, these two problems will collide and can create a housing market crash.
Capital Growth remains committed to helping Canadian real estate agents get faster access to their commissions, for the lowest price possible. We work with all deal types, including residential, commercial, new builds, open land, leases, and rentals.
SOURCE Capital Growth Financial Corporation
For further information: Ryan Suchet, President, Capital Growth Financial Corporation, [email protected], 1-888-818-9621