The Big 6 banks have lifted their prime rate to 3.00%, from 2.75%, effective tomorrow.
The move follows the 1/4 point hike by the Bank of Canada earlier today.
The typical deep-discounted variable rate is now 2.30% for well-qualified borrowers.
Apart from variable rates, other short-term rates may come under pressure in the near future. 12-month bankers’ acceptance yields, which often track things like 1-year fixed mortgage rates, have broken above levels not seen since January 2009.
If you’re in the market for a variable and can get a 1-year fixed for the same price, it may pay to lean towards the latter. (See: 1-year Fixed Mortgage)