Banks cut prime rate to 5.2%, following Bank of Canada's lead
Reduction brings more relief for variable-rate mortgage borrowers
Royal Bank of Canada, Toronto Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Montreal, National Bank of Canada, Desjardins Group, Equitable Bank and Bank of Nova Scotia announced Wednesday they would cut their prime rate, following the lead of the Bank of Canada.
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The banks said they would decrease the prime rate by 25 basis points from 5.45 per cent to 5.20 per cent just hours after Canada’s central bank cut its interest rate by a quarter point to 3 per cent.
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The lower rate, effective Jan. 30, brings relief for variable rate mortgage borrowers.
Calculations by Ratehub.ca show that a homeowner who put a 10 per cent down payment on an average priced home in Canada — $676,640 as of December 2024 — would pay around $87 less per month with a five-year variable rate.
More to come …
Additional reporting by The Canadian Press
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