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It's Time For Oaken To Increase GIC Rates!

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It's Time For Oaken To Increase GIC Rates!

July 14, 2023
8:27 am

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Many financial institutions now have GIC rates considerably higher than Oaken.
Even Home Trust/Home Bank have much better rates than Oaken, as of today.

Oaken Financial...............5.25 5.15 5.00 4.70 4.70
Home Trust/Home Bank 5.42 5.34 5.31 5.02 5.03

Oaken needs to raise GIC rates to at least match Home Trust/Home Bank!

July 14, 2023
9:38 am

hwyc

GTA

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I too am waiting for mine to raise their 1-yr rate. Then I'll pounce.

July 14, 2023
12:54 pm

Rail Baron

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I wonder if the current spread between Oaken's rates and those of Home Bank/Trust is an experiment for the new owner to see if they really need to keep this extra layer of deposit taking?

July 15, 2023
9:27 am

Norman1

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Home Trust will keep all its deposit taking channels if it wishes to see that upcoming upgrade to its debt ratings. This is from DBRS' March 24, 2023 report DBRS Morningstar Confirms Ratings on Home Capital Group Inc. at BBB (low) and Home Trust Company at BBB, Trends Remain Positive:

RATING DRIVERS

DBRS Morningstar will upgrade the ratings if the acquisition is completed [by a wholly owned subsidiary of Smith Financial Corporation] without material changes to HTC’s structure, leverage, and operating model as a standalone OSFI regulated institution, along with further progress in diversifying funding sources and continued strong financial performance.

…
RATING RATIONALE

Funding and Liquidity Combined Building Block (BB) Assessment: Good/Moderate

Although on a downward trend, the [Home Capital] Group continues to be highly dependent on broker-sourced deposits, which comprised a still-high 69% of its $15.9 billion total deposits at December 31, 2022. Positively, HCG continues to grow its direct-to-consumer channel through its Oaken Financial offering, and directly sourced deposits have increased 12% YoY to $4.9 billion [31% of its total deposits]. Additionally, the Group further diversified its wholesale funding, …

July 24, 2023
6:08 am

MAC99

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December 27, 2021

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Please note that effective Monday, July 24th, 2023, we will be increasing the interest rate for Oaken long-term GICs as noted below:

Long-term GICs:

1 Year GIC – 5.50% (previously 5.25%)
18 Month GIC – 5.50% (previously 5.20%)
2 Year GIC – 5.50% (previously 5.15%)
3 Year GIC – 5.35% (previously 5.00%)
4 Year GIC – 5.00% (previously 4.70%)
5 Year GIC – 5.00% (previously 4.70%)

The new GIC rates will be applied automatically for all corresponding GICs booked on Monday, July 17th, 2023 or later.

All other Oaken rates will remain unchanged.

July 24, 2023
5:45 pm

Dean

Valhalla Mountains, British Columbia

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