Wednesday, July 12, 2017

Prime Rate Increase Means Loan Rate Increases

Canada's Five Major Banks Boost Rates

The Royal Bank of Canada, TD Bank, Bank of Montreal, Scotiabank and CIBC all announced prime rate hikes today.  The increase in the prime rate will be to 2.95 per cent from 2.7 per cent, effective Thursday, July 13th. 

The prime lending rate is the rate that banks use to set interest rates for variable-rate mortgages and other loans.

Prime Rate

The prime rate increase follows a rate hike from the central bank.  The Bank of Canada raised its key interest rate for the first time in seven years today to 0.75 per cent from 0.5 per cent.  

What's Next

Some forecasters believe there could be another Bank of Canada increase in the fourth quarter this year and marginal increases in 2018.  

To get a clear understanding of what the change means to you, consult with your lender to better plan for your best strategy for establishing a new mortgage and renewing a mortgage in the near future.   

Contact me and I would be happy to supply you with several lender names if you are considering a purchase or are contemplating a change with your current mortgage.

If you know someone who would appreciate the services I provide for Sellers and Buyers, contact me with their name and I will follow up.  Your referral is greatly appreciated.

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