![]() ![]() Some car and auto loans have variable interest rates that are based on the Prime rate. It is currently set to 6.85% compared to its regular Prime rate of 6.7%. TD Bank uses a different Prime rate for its mortgages. Having a good credit score and mortgage insurance can usually get you the lowest mortgage rates. Your rate will depend on your specific mortgage, property, and financial situation. These mortgages are "variable rate" because their interest rates can change if the Prime rate changes. Variable rate mortgages are offered by many lenders and their interest rates are based on the Prime rate. If the current Prime rate is 5.45%, then the rate for a HELOC at "Prime + 0.50%" would be 5.95%. HELOCs are almost always variable rate and based on the Prime rate. ![]() Other variable rate credit cards include TD's Emerald Flex Rate Visa and National Bank's Syncro Mastercard. RBC's RateAdvantage Visa, for example, has an interest rate of "Prime + 4.99%" to "Prime + 8.99%". Because they are not backed by an asset like a house or car, they are unsecured and will usually have high interest rates to make up for the additional risk. Some credit cards set their interest based on the Prime rate. The interest rates of many lending products are based off the Prime rate and may go up or down when the Prime rate changes. If you borrow money, you are affected by the Prime rate. ![]() Average home prices in Canada are down by 19% from their peak in February 2022, as the cost of borrowing in Canada has increased dramatically over the past year. Meanwhile, sales and home prices in Canada’s housing market have slipped over the past year as interest rates soar. This rate is burdensome on those with variable-rate mortgages, HELOCs, and lines of credit. The prime is at its highest level over the past 22 years. Prime rates stay at 6.7% at Canada’s financial institutions.
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