Tag: Prime rate

What Makes Prime Fluctuate- Podcast with Ian Power @PulseFM

If you have or thinking of getting a mortgage, or a loan you may have heard the term prime. If you are in the industry you have probably heard of the “overnight lending rate.” Lines of credit, Home equity lines of credit, and variable mortgages are all considered fluctuating rates. These rates go up or down based on the prime rate. Prime is a rate that financial institutions lend at. Depending on the product that you are getting ie. mortgage or loan, the rate offered would be at prime – […]

BoC keeps overnight interest rate steady

As expected over the past week or so, Bank of Canada today announced that it is holding its overnight interest rate steady at 0.75 per cent. Following BoC’s surprise rate cut in January (its first rate cut in nearly five years), banks followed suite by reducing their Prime rate, which meant homeowners with a variable-rate mortgage saw their rate drop (those with a fixed-rate mortgage would only benefit if they chose to refinance or reached the end of their mortgage term). BoC could reduce its overnight lending rate at its […]

Experts predict another Bank of Canada rate reduction

Bank of Canada’s next rate announcement is set for March 4, and BoC’s senior deputy governor Carolyn Wilkins stated yesterday that the bank is concerned about Canada’s labour market and hopes that low and stable inflation will help spur more job creation. “The economy still has room to grow” and that the bank’s monetary policy will “support the needed adjustments,” she explained according to MortgageBrokerNews.ca. Given low oil prices and other factors, three (CIBC, TD Bank and RBC) out of the five major banks are predicting another rate cut, reports MortgageBrokerNews.ca: Canada’s largest bank [RBC] has […]

Atrina Kouroshnia February 11, 2015 Post Comment

The impact of Bank of Canada’s rate reduction

It’s been nearly two weeks since Bank of Canada announced a reduction to its overnight lending rate. At the time, we could only conjecture about how this rate reduction might impact borrowers and mortgage rates, but now we’ve seen its actual impact. Here’s a look at what’s happened since the announcement: Prime Lending Rate Soon after Bank of Canada’s announcement, Canada’s five major banks–Royal Bank of Canada, Bank of Montreal, TD Canada Trust, CIBC and Scotiabank–cut their prime lending rate by 15 basis points to 2.85 effective last week. Mortgage Rates […]

Atrina Kouroshnia February 3, 2015 Post Comment

Bank of Canada cuts overnight lending rates

Until recently, experts were predicting an interest rate hike in 2015, but to everyone’s surprise The Bank of Canada announced it was cutting its overnight lending rate from 1 per cent to 0.75 per cent this morning in response to falling oil prices. The cost per barrel of oil is now less than half of the $105 US it cost in June of last year. According to CBC: “The drop in oil prices is unambiguously negative for the Canadian economy,” Bank of Canada governor Stephen Poloz said in a morning […]

Atrina Kouroshnia January 21, 2015 Post Comment