12 July 2017

Canadian banks raised their prime rate to 3.7% after the central bank’s announcement

Canada’s Big Six banks decided to raise their prime rates following the BoC overnight rate increase.

On Thursday, Royal Bank, TD Canada Trust, BMO, Scotiabank, CIBC and National Bank announced their prime rates went up from 3.45% to 3.70%.

This rise will increase borrowing costs for those who have loans depending on prime rates, for instance, variable rate mortgages and lines of credit.

As you know, the central bank raised its key lending rate by 0.25% to 1.5% yesterday, marking the fourth hike in s year.