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Bank towers are shown from Bay Street in Toronto's financial district. (Adrien Veczan/THE CANADIAN PRESS)
Bank towers are shown from Bay Street in Toronto's financial district. (Adrien Veczan/THE CANADIAN PRESS)

Big Six banks hike prime rates, moving in step with Bank of Canada increase Add to ...

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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.

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Money Monitor: How rising interest rates affect mortgages (The Canadian Press)
 

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