Canadian financial institutions reduced their prime lending rates after the Bank of Canada’s decision to lower its key interest rate on Wednesday. The question stands, are these cuts benefiting property investments?
The big six banks – RBC, TD, BMO, Scotiabank, CIBC and National Bank – along with Laurentian Bank and Desjardins, adjusted their prime rates to 6.70% from 6.95%.
This marks the second rate cut this year, after a similar move in June by the central bank and private banks.
Prime rates influence lending rates for various financial products, including variable-rate mortgages and lines of credit. For real estate investors, the lower prime rates could mean reduced borrowing costs. This will potentially make property investments more attractive and affordable.
In the above video, Ontario-based property investment leader, Michael Succurro beaks down three key insights investors should know following these cuts.
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