It will come as no surprise to many listeners of the Real Estate Show to find out that Bank of Canada cut the key overnight rate down to .50% today. However, we once again are seeing banks attempting to put money in their pockets by not following through with a full prime rate reduction. The current prime rate is sitting at 2.85% for most banks and TD has announced today that it will lower the prime rate by .10 bringing it down to 2.75%. If the banks had followed the rate reductions that the BOC has done this year the current prime rate should sit at 2.5%. However they have not, it remains to be seen if any of the other major banks decide to cut the prime rate down to what it should be but, in my opinion, it is not very likely.
The rate cut news has triggered the loony to lose ground against the US greenback. After today’s BoC announcement the loonie fell to 77.53 cents US, which is the lowest we have seen it since 2009.
Find out about Northeast Mortgage’s rates by clicking the following link: https://www.nordest.ca/services.php