It may be time to refinance your mortgage or other personal loans.
Canada’s six big commercial banks - Royal Bank of Canada, Bank of Nova Scotia, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Bank of Montreal and National Bank of Canada – each lowered their prime lending rates by 50 basis points to 2.95% from 3.45% in response to the recent cut in the benchmark Bank of Canada interest rate.
It’s the second significant rate cut in less than two weeks by Canada’s big banks, after all of them lowered their prime lending rates by 50 basis points on March 5. The prime rate is a key benchmark that underpins variable-rate mortgages and lines of credit.
The move comes as Canada's housing market enters the traditional busy season, though there is speculation that the coronavirus outbreak could weaken demand during the spring period. In recent remarks, Bank of Canada Governor Stephen Poloz would not rule out further interest rate reductions should the central bank feel they are warranted.
Over the weekend, the U.S. Federal Reserve slashed its key lending rate by a full percentage point, bringing its key rate to a range of 0% to 0.25%, matching the record low level it hit during the 2008 financial crisis and where it was held until December 2015.
