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Monday, August 20, 2012

I know a bank that is going broke: RBC Royal Bank

RBC Royal Bank started by increasing the interest rate on their credit line products and now, RBC Royal Bank is boosting the interest rate on their mortgages. Who's going to do business with RBC? Not me for sure!

Its seem to me like the RBC Royal Bank has participated in the Maple Group but seem to be in a difficult path to avoid the vitality of their contribution to the Maple Group. First of all, RBC Royal Bank started by increasing the interest rate of my credit line of 3%. My response to that? I sold all of the RBC mutual funds that I hold and I paid off my credit line. I won't be doing business with RBC Royal Bank never ever again of my life.

RBC has no right to so, or should I say its not a very elegant moves of their part. The prime rate hasn't change and the RBC Royal Bank is increasing the interest rate on all of their credit products. Does that make any sense to you? It doesn't for me; that's why I decided to flush RBC Royal Bank out of my life.

Fact is, the RBC Royal Bank cannot afford its contribution to the Maple Group. That's what happening at this time. Also, the RBC Royal Bank is under a massive audit right now, trying to save any pennies they can from their businesses with third parties.

Does it feel goodto be part of the RBC Royal Bank as a customer or an employee?


RBC Royal Bank CEO is a sad and stupid clown.

Don't ever put your trust in RBC Royal Bank. If a bank increase its interest rates on various products while nothing has change for the prime rate, well, think well: that bank is evil and only running for profit and profit so they can pay their executive members millions of dollars and be, at the really same time, part of the Maple Group.

I am really right on that one. Be smart and happily flush RBC Royal Bank out of your life. NOW!


Anonymous said...

Fixed mortgage rates are affected by bonds rates and bonds rates have increased more than a quarter percent in the last month.

Investors who buy mortgage back securities demand higher yield than bond rates. So when bond rates goes up, mortgage rates usually follows.

Mortgages rates are at their all time low and one fifth of a percentage is hardly an increase.

It doesn't make sense to you because you don't understand much about finances.

All you do is cry about everything without understanding much!

Anonymous said...

Sunny, rate was increased also. I called them. They told me that to pay more than the interest on loc or a bank may determine you high risk of not paying it off. My credit is still the highest it can be. I am going to assume all banks will do this eventually.

I did tell rbc I used the loc as investment purposes also

2 said...

Thanks Anonymous... at least you are someone who provides great understanding rather than complaining about something that you wouldn't understand.

Sunny said...

You shouldn't accept such response of RBC. Fact is, they are under a major audit right, trying to cut their expenses so they can continue paying their executives million AND afford their position in the Maple Group.

Am not at risk, fact is see, I paid off my credit line and yeah, sell my RBC mutual funds.

I am not crying right now, its the bastards at RBC who are crying.

I don't care about mortgage and how they work. You need to be a complete idiot to enroll in a mortgage.

Anonymous said...

Hi Sunny-"You need to be a complete idiot to enroll in a mortgage" comment is right on the spot. When this interest rate cycle reverts back to its' norm (at about 6% rates) that will be the time to get a mortgage(s). But not now when everyone and their dog is trying to get into the housing market.


Sunny said...

That's me doing the tough girl ;)


Personally, I don't see any value in owning a home, that's why I wrote that people going under a mortgage are stupid.

Home owning is for the rich, not the middle class. Two good colleagues of mine got fired yesterday. Fact is, everything and anything can happen these days. Better be prepare for the worst.

I like the freedom that provide investment. Getting enroll in a mortgage doesn't provide any liberty, its a sabotage act of complete slavery to the capitalist system. Mortgages exist so bankers can do money on people dream of owning their own home.

I prefer have my cash invested, it allow me to do whatever I want in term of mobility. I can go and do whatever I want when I want.

Ok, I cannot rely exclusively on my portfolio for my living at this time, but I can rely on it for a big part and my minimum living expenses here are of $1 300.

Mortgage is slavery: you have to stay where you are and pay the f"cking mortgage. Sh.t!!!! It's a trap made by bankers so they afford paying themselves some juicy bonus.

The goal through investment is not to get rich, or should I say my goal, is to have the capacity to have control over my own life.

And having such control is the real deal. The real richness.

No one should depend on bank or on its own employers. People are not reliable enough, especially here in Quebec province. NEVER rely on bank. NEVER count on one single paycheck for your living.

The 2 people that got fired yesterday didn't deserved such cheap treatment. But it happen.

I am just happy to have my dividend income and my freelance work to rely on. Its not easy to combine all those to a full-time job, but it's possible. If I can do it, everyone can. Be independent.

And by the way, I know a sexy girl who's going to turn 32 this upcoming Monday.

That sexy pal is ME.



Anonymous said...

So mortgage exist so bankers can make money off people dreaming to own a home. Who's making money off the rent you're paying for your apartment right now. Fact is what ever you do, there's always someone making money on the other side. You take a painting course, someone's making money; you go eat out at a restaurant, someone is making money, you go to university, someone is making money, etc..

That's the way the world runs, I run a business and make money, but if I need my car repaired, someone else is making money off me, if I need some repair to my house, someone else is making money off me. If you choose to do nothing in life and keep your money to yourself, well than no one will make money off you, but then again, you won't have nothing in life.

I had a mortgage for my house and paid it after 12 years. Now the house is mine and I don't have to pay rent to anyone anymore. That's what I call freedom. If I decide to sell, I can get 200k, if not I will settle for 150k. I rather have 150k in something I can enjoy instead of having 150k in a bank account.

And talking about bankers making money off mortgages, what about bankers doing money off your margin account. Your portfolio value is about the same as last year and the only one that made money is the bank with their interest charges.

My monthly living expenses are electricity 200$, property tax 125$, insurance 30$, water 50$ for a total of $405 for my own house; how much do you pay for rent for something that doesn't belong to you and no privacy.

Sunny said...

I may be at the same portfolio value as last year, it could be. My performance on the stock market is not what interest me most. I want to keep my head out of the water and cash in some profit. But don't forget all the dividend earn, the money made on some trade and the tax credit on money borrowed for investing. Things are not exactly what they look like. And I made real good money on stuff like CNR, AGU.

The stock market is really rough and I invest for the long term. another reason why I invested in Jean-François Tardif fund is to be able to generate some kind of profit.

It took you 12 years to pay off your mortgage! In 12 years, I will be able to probably say goodbye tot he workplace if I feel like it.

I pay $610 for my rent. I don't have any metro pass to pay since I am closed to everything. It's expensive, but I have no lease. I can leave when I want. I may be able to find cheaper if I look at it, but I am ok where I am. $610 or $405, there's no big deal of a difference. And I don't have anything to fix in, no maintenance what so ever.

I don't have real privacy as the wall seem to be made in Chinese paper: we can hear everything :)

Owning a house or not is the choice of the individual. I am not interested in owning a home. I prefer apartment made with Chinese stuff for now and enjoy my money the way I want. I wouldn't like to buy a place in Montreal, that's for sure.

Anonymous said...

Money alone won't make you happy. You spent your young days working 2 or 3 jobs at a time while someone else got an education and works normal hours and can still enjoy life.

I used to think like you and wanted to save and retire early. Then I realized why waste my time when I am young and healthy to work my ass off to save money for when I'm old and might not be able to enjoy it as much.

Plus, I suppose if you have already been laid off from work you know it gets pretty boring being at home doing nothing.

Life is better lived in a balanced. Work, save but don't forget to enjoy yourself and don't be afraid to treat yourself from time to time. The older you get, the more you'll realize how precious your time is and money in the bank is not worth much if you can't let yourself enjoy it.

Anonymous said...

RBC is far from broke as it made over 2 billion in the last quarter. Obviously it doesn't have any problem paying for it's share of the TSX and you don't seem to know what you're talking about. How can anyone take you seriously?

Sunny said...

I had a 3% increased for no reason at all made by RBC on my credit line: that's how they make their money, by cheating the middle class. If you are willing to take a bank that act like a complete bunch of ash@les, that's up to you.

Anonymous said...

My reply was to point out that the reason you stated that Royal Bank increase their rates couldn't be farther from the truth. They have no problem paying for their investment in the Maple group and are definitely not going broke as you seem to think. Over 2 billion in profit proves that.

Royal Bank is not the only bank that raised rates and fees and are not the only one that made billions. If were not happy with that we can switch bank, but the sad fact is that all the banks are alike. I took advantaged of the situation and bought bank share so I'm not complaining when they raise their fees as I am well rewarded with their stock prices and dividend increase.

And lets not forget that your high debt level was probably taken into consideration for raising their rates. Your credit score is not only determined by whether you pay your bills on time; there's a list of other factors like % of debt vs income, job stability, collateral, etc... The only collateral you have is stocks which can crash anytime.

You prefer to blame everyone else and make false statement instead of looking at why things are happening.


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