After the Bank of Canada cut its key rate by three-quarters of a percentage point yesterday, Canada's six largest banks only passed on 50 basis point reduction to their clients lowering prime to 3.5%.
Several other non-bank lenders have also already reduced their prime rate to 3.5% and certainly all will follow.
This is good news for customers who have variable rate products, although we can all agree that receiving the full 3/4 would be even better news.
Banks argue that given the current economic turmoil and higher costs of borrowing funds, makes it harder for them to pass on the full rate cut.
With home prices reduced and low interest rates this is certainly a great time to buy real estate in most markets in Ontario. First Time Home Buyers who have been waiting to see what happens should seriously start looking and be ready to make a decent offer on a new home before the prices start to go rise again.
If you have not been pre-approved yet, please contact me to discuss your options.
gbarrow@dominionlending.ca
Have a great Day!
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