Base interest rates
Apr 8th 2007 | 11:59 pm
#1
Thread Starter
Forum Regular
Joined: Aug 2005
Posts: 44
From: Ottawa
Base interest rates
Is Canada like the UK in respect that there is a nationwide base rate of interest that lenders add to for customers? Or are these done on a provincial level?
I'm hoping to go to NB.
Regards Emyr Thomas
I'm hoping to go to NB.
Regards Emyr Thomas
Apr 9th 2007 | 12:07 am
#2
Slightly Canadian
Joined: Jul 2005
Posts: 10,146
From: St. John's, Newfoundland
Re: Base interest rates
Yes. It's called the PRIME rate. Currently it is 6%. Borrowing is generally linked in some way to prime rate. So for example I have a mortgage with a discount from prime of 0.9% so am currently paying 5.1%. My line of credit on the other hand is prime+2% so costs me 8%. AFAIK it's a national thing rather than a provincial thing.
HTH,
AX
HTH,
AX
Apr 10th 2007 | 9:56 am
#3
BE Forum Addict
Joined: Dec 2005
Posts: 1,238
From: Colorado Springs
Re: Base interest rates
Yes. It's called the PRIME rate. Currently it is 6%. Borrowing is generally linked in some way to prime rate. So for example I have a mortgage with a discount from prime of 0.9% so am currently paying 5.1%. My line of credit on the other hand is prime+2% so costs me 8%. AFAIK it's a national thing rather than a provincial thing.
HTH,
AX
HTH,
AX
Apr 10th 2007 | 10:14 am
#4
Chilled out Cheshire Cat
Joined: Jan 2006
Posts: 497
From: Cheshire, UK
Re: Base interest rates
http://www.bankofcanada.ca/en/monetary/target.html which is equivalent to our Bank of England Rate
Others are quoting a prime rate which seems to be a consumer rate which is a lot higher than base. In fact if 6% was the base rate of Canada the Exchange rate would not be so favourable for Brits emigrating
