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Prime was reduced this morning from the current .75% to .5%. Bank Prime is different than The Bank of Canada Prime Rate. Here is the press release from this morning. http://www.bankofcanada.ca/2015/07/fad-press-release-2015-07-15/
Like earlier this year the Banks will not likely follow this adjustment in its entirety. One large bank has decided to only reduce there prime to 2.75 (10 basis points ) on Thursday. More details here: http://www.cbc.ca/news/business/bank-of-canada-cuts-benchmark-interest-rate-to-0-5-1.3152673
The other lenders will announce later and usually all end up reducing their prime accordingly. For a variable rate mortgage holder this could mean up to a reduction in the payment due approx $4.00 per $100,000.00 carried in mortgage on average monthly. This is an oppertunity to pre pay your mortgage by keepng the payments the same or increasing your payments, so keep an eye out for your next statement or preview your mortgage online.
Should you have any questions about your mortgage, require a rate hold for you or someone you care about, or would like to ensure you have the mortgage to result in the most savings, email us today at email@example.com or call 604-802-3983 for us to help personally.
Have a good week.
Angela Calla, AMP