As the slight possibility of a Prime rate reduction from the Bank of Canada approaches, we’ve been telling clients that there is a possibility based on this that banks will reduce the spread from prime that banks offer clients for variable rate mortgages.  Today RBC started the trend, by reducing the spread on their variable rate mortgage from Prime minus 0.65% to Prime minus 0.45% increasing the starting rate for a variable rate mortgage to 2.55% from 2.35%.

If you’re in the market for a variable rate, contact us to get a rate hold soon to be safe. While the prime rate can always change (the next scheduled Bank of Canada interest rate meeting is September 7th), some lenders offer 120 day rate guarantees on the spread which we can secure for you.

Meanwhile, we continue to offer Prime minus 0.90% for variable rate mortgage approvals, but we’re not sure how long that will last!