It will take very little time for many Canadian borrowers to feel the effects of the first rate hike in seven years.
After the Bank of Canada raised its key overnight lending rate by 25 basis points – a quarter of a percentage point – on Wednesday morning, the country’s largest banks quickly followed suit. By the end of the day, the Big Six banks had all raised their prime lending rates to 2.95 per cent from 2.7 per cent, effective Thursday. As the basis for most variable loans, the higher prime rate will immediately result in additional borrowing costs on products like variable-rate mortgages, home equity lines of credit, and other credit lines.Report Typo/Error
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- Royal Bank of Canada$94.75-0.46(-0.48%)
- Royal Bank of Canada$75.57-0.07(-0.09%)
- Bank of Nova Scotia$77.79-0.53(-0.68%)
- Canadian Imperial Bank of Commerce$108.24-0.95(-0.87%)
- Toronto-Dominion Bank$65.35-0.13(-0.20%)
- National Bank of Canada$56.13-0.03(-0.05%)
- Bank of Montreal$96.32-0.39(-0.40%)
- Updated July 21 4:00 PM EDT. Delayed by at least 15 minutes.