Canada’s big banks cut prime lending rate to 2.85%, failing to match BoC move.
Some lenders take advantage and offer 5 year - 2.00% Variable Rate Mortgages*.
January 28th, 2015 - (Cambridge, ON)
With Royal Bank leading the charge, the Banks have moved the prime rate to reflect the change in the overnight rate... Well not entirely. The overnight lending rate was droped by 25 basis points where the prime rate has been adjusted by only 15 basis points putting the difference into the banking vault. Variable Rate Mortgages should see the impact shortly. There has been no mention to alter fixed rates mortgages at this time. Compared to the US Prime/Overnight differential the Canadian Banks, in good Canadian terms, are still more generous in the pass through.
With Prime Rate being at a all time low since 2010, the stimulus is in place; will the market respond? Some lenders have taken this opportunity to provide for even more attractive discounts off a 5 year mortgage variable mortgage providing for rates as low as 2.00%.
* Some conditions apply. OAC