Variable rate discounts are quickly evaporating at Canada's major banks. Effective tomorrow, TD, Scotia, CIBC, and Royal are reducing the discount under Prime at which they are willing to lend new mortgage money. Soon, the second-tier lenders will follow.
The banks are encouraging borrowers to choose higher margin fixed rate loans, which generate a steady income and stream of profits for the banks. Generally, new rates on variable loans will be in the 2.5% range for A rated borrowers, and in the neighbourhood of 3.29% for fixed rate borrowers.
No comments:
Post a Comment