Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Guest Posts

TD Hikes Its Mortgage Prime Rate

Ratehub.ca by Ratehub.ca
November 2, 2016
in Guest Posts, Mortgage News
Reading Time: 2 mins read
How will TD's higher Mortgage Prime Rate affect you?
Share6
Tweet
Share4
10 Shares

TD Canada Trust has quietly increased its mortgage prime rate to 2.85%, which is 15 basis points higher than what the other Big Five banks are advertising.

Customers with a variable-rate mortgage will be affected by the change, but those with a fixed-rate mortgage or a home equity line of credit will not.

Will You Pay More For Your Mortgage?

With a variable-rate mortgage, the rate is related to the bank’s prime rate (in this case, it’s the TD mortgage prime rate). Your mortgage rate moves up or down when the prime rate changes. A bank’s prime rate is usually tied to the Bank of Canada’s benchmark interest rate, which has stayed the same since July 2015. The difference here is that TD’s mortgage prime rate increased while its regular prime rate remained at 2.7%.

Anticipating Mortgage Changes

James Laird, president of CanWise Financial, says TD probably increased its mortgage prime rate because it’s anticipating higher lending costs. Last month, the Finance Department announced new mortgage rules and it also proposed lender risk sharing for insured mortgages. Both changes are expected to lead to an increase in mortgage rates. By raising the mortgage prime rate, TD can pass on those anticipated costs to its customers with variable-rate mortgages.

For those with a variable-rate mortgage at TD, their mortgage payments will either increase or a higher proportion of their payment will go towards the interest portion of their payment. If you have a variable-rate mortgage at another financial institution, there won’t be a change for the time being. However, other lenders may follow TD’s lead and also raise rates. (Be sure to check the best mortgage rates before getting a mortgage.)

A History of Higher Rates

This isn’t the first time TD has bucked the trend. When the Bank of Canada cut interest rates in July 2015, TD lowered its rate by 10 basis points to 2.75%. But the other banks lowered their prime rates by 15 basis points to 2.7%. TD soon followed suit later that day and cut its prime rate to 2.7%.

The Bank of Canada will make its next interest rate decision on Dec. 7.

RateHub.ca is a website that compares mortgage rates, credit cards and deposit rates with the goal to empower Canadians to search smarter and save money.

Previous Post

What You Should Know About Townhouse Maintenance Fees

Next Post

Should You Ever Drop Your Offer to Purchase Conditions?

Ratehub.ca

Ratehub.ca

At Ratehub.ca we make it easier for Canadians to choose better personal finance. With the best tools, rates and knowledge to help you take control of your money. Whether it’s a mortgage rate or insurance rate, a credit card, chequing account or high-interest savings account, we are your champions of choice.

Related Posts

A couple talking with a mortgage professional.
Bank of Canada

The First BoC Rate Hold of 2025: What it Means for Market Momentum 

April 16, 2025
A woman looking at her finances with a calculator.
Bank of Canada

Tariff Uncertainty Leads to an Interest Rate Cut from the Bank of Canada 

March 12, 2025
Two small houses on top of a keyboard
Bank of Canada

How the Bank of Canada’s Final Rate Cut of 2024 Could Shape Buyer Sentiment in 2025

December 11, 2024

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

Longer Days, Slower Sales as June Market Offers Buyer Advantage: TRREB

July 7, 2025
Condo balcony overlooking the water

Canada’s Hottest Condo Market of the Last Decade Might Surprise You (It’s Not Toronto or Vancouver)

July 7, 2025
Two model homes, a residential lease agreement and a pair of keys.

How to Break a Lease Under Canadian Rental Laws

July 6, 2025
Two people relax in a pool, one wearing a straw hat, enjoying a sunny day together.

The Real Cost to Own a Pool in 2025: From Build to Yearly Upkeep

July 5, 2025

Featured Listings

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025

6 Can’t-Miss Victorian Homes for Sale in San Francisco Right Now

June 2, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.