In response to recent mortgage qualification changes by the government, the TD Bank announced that it was going to increase the interest rate it charges customers with variable rate mortgages.
The changes won't affect customers with fixed-rate mortgages – nor will they affect other products, such as lines of credit.
But customers with variable rate mortgages will see TD Mortgage Prime rate rise from 2.7% to 2.85%.
Money Sense offers some insight into how this change will affect borrowers:
The increase means borrowers with variable-rate mortgages at TD will see a larger portion of their mortgage payment go toward paying interest instead of repaying principal if their payment remains the same.
So if you are shopping for a mortgage, make sure you are comparing apples to apples and oranges to oranges.
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Tagged with Comparison Shopping, Finance, Prime Rate, Rate Changes
BC & Alberta Mortgage Broker
Eva Poulson
When I'm not breaking the knuckles of different lenders for better mortgages for my clients - I'm kidding (or am I?) - you can usually find me visiting with friends or family, writing for this blog, or doing my best to keep from capsizing a dragon boat!