Why TD may be the only one of the Big Six to increase their Mortgage Prime Rate
By now we have all heard that TD’s Mortgage Prime Rate has increased. What is interesting is that myself, as well as many others reported that TD’s Variable in conjunction with the lines of credit products would increase as well. We were quickly reminded that TD has both a ‘Mortgage Prime Rate’ and a ‘Prime Rate’. Mortgage Prime Rate affects all TD Variable products while Prime Rate affects all lines of credit products. I’m trying to think back in history, at least within my 14 years and I cannot think of a time where TD’s Mortgage Prime Rate was different from their Prime Rate…I can’t recall a time.
I decided to checkout if the other big 5 banks priced their Variables off Prime Rate or something else like a Mortgage Prime Rate and here is what I found.
National Bank: They appear to use their Prime Rate
BMO: They appear to use their Prime Rate
RBC: They appear to use their Prime Rate
Scotiabank: They appear to use their Prime Rate
CIBC: They appear to use their Prime Rate
TD Bank: You already know this but thought I would include it
After reviewing the various policies that were available online, it appears TD Bank is the only lender with both a Prime Rate and a Mortgage Prime Rate.
So will others lenders follow suit with a Mortgage Prime Rate increase of their own?
Nope. TD is the only big bank with a Mortgage Prime Rate. That said, the others could increase their Prime Rate, but that would likely impact more than just mortgage products. As it stands, the other big 5 banks have the edge while existing TD Variable rate clients are left paying more.
If you are in a Variable/Adjustable product, before you jump to locking it in, give my office a call at 403.242.5547. Lets revisit your strategy a look at forecasting models so we can see your plan to fruition. You don’t have to make an uninformed decision…we are here to help. We look forward to speaking with you.
Jeremy
