Today, for the second time this year, the Bank of Canada raised their rate by 0.25%. This affects your variable rate mortgages and your secured lines of credit. The next announcement, scheduled Sept 5.
Historically, the banks matched their prime rate increase in step with the Bank of Canada increase.
We could assume after today’s announcement that most lenders’ prime rate changes to 3.70%, however, we should be cautious with this assumption and continue to monitor what the lenders may do. Note some lenders, including credit unions, may have their own ‘benchmark prime rate’ that may be different from the majority. You have to check the fine print with the lender.