RBC has lowered their prime rate from 6.00% to 5.75%. That’s good news for variable rate mortgagors.
Last week TD, for one, seemed unsure if they’d follow the Bank of Canada (BoC) and lower prime. The other big banks will now most likely follow suit.
RBC, the biggest lender in Canada, announced their cut swiftly. That’s probably to head off any speculation that the big banks would defy the BoC’s wishes.
With prime rate falling to 5.75%, most variable rate borrowers can now look forward to a $14.79/month savings per $100,000 mortgaged. (assuming a 25-year amortization)
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Last modified: April 25, 2014
BMO has updated their website also to reflect that they have lowered their prime lending rate.
After re-reading our post above, I should note that RBC is usually first with their prime rate announcements after a Bank of Canada rate move. So in that sense, it’s not unusual that they led the pack.
Also, one of our faithful readers mentioned that RBC often announces very soon after the BoC’s rate moves. Indeed, RBC’s last two prime rate announcements came at:
12/4/2007: 13:47 ET
7/10/2007: 9:29 ET
Cheers,
Rob, Co-Editor