PRIME RATE DECREASES TO 2.85%
PRIME RATE HAS DECREASED TO 2.85% !
With the new of Bank of Canada rate going down, the banks are now decreasing their Prime Rate to 2.85% .Though some of us may be happy about it , I have to remind everyone, once again, that, when that happens, is a sign that inflation is raising .
Advice to all my clients that have variable rates : your mortgage payment will decrease once your bank will adjust their prime rate . Please call you bank and ask them to keep the payment as it is right now, you are not doing yourself a favor by having a lower payment. By keeping the payment as it is, a bigger portion of your mortgage payment will go against the principal, hence, a lower amortization and less interest that you are paying. Final result : you will pay your mortgage sooner !
Have an amazing day !
Doina