A few of Canada’s biggest banks lowered their prime rates immediately after the Bank of Canada (BoC) announced they were cutting the target for the overnight rate by 0.75% to 1.75%. However, the big news will be that they weren’t able to match the BoC’s cut. The Banks that have announced their new Prime Rates so far:
This will be good news for those on variable mortgage rates, however, it shows a more worrying sign that despite the BoC dropping the main lending rate, the big banks cost of funds are still higher than the are in “normal” circumstances, resulting in them not being able to pass the full rate on to customers.
We’ll wait with interest to see what the other banks do.
Want us to send you a weekly recap of the latest posts straight to your inbox? (Plus we've been known to send out a giveaway or two.) Sign up for our weekly Friday Roundup.
