On Wednesday, July 15th, the Bank of Canada cut their Overnight Lending rate from 0.75% down to 0.50% – marking the second time in 2015 the BoC has lowered their key interest rate.
Canada’s largest banks would typically follow suit and decrease their Prime Rate by an equal 0.25%; however, not long after the Bank of Canada announcement, TD Bank announced they would only be passing on a 0.10% decrease to Canadians.
What does this mean for the average Canadian? If you have a Variable Rate Mortgage, meaning a mortgage rate that is based off your lending institution’s Prime Rate, you’ll see your mortgage rate decrease by 0.10%.
If you have any questions, call MonsterMortgage.ca today.