TD Raises Rates

Article from Financial Post

One of the country’s largest banks has moved a key prime rate up 15 basis points for variable-rate mortgage customers, a change that will affect some Canadians with floating rate products.

Toronto-Dominion Bank began quietly telling the lending industry on Monday that its prime lending rate was going to jump from 2.7 per cent to 2.85 per cent on Tuesday for one segment of its business — a move that coincides with new federal mortgages rules that many have said will cost the banks money and ultimately be passed on to consumers.

“This will impact customers who hold a variable interest rate mortgage,” said a TD spokesperson in an email. “There is no impact for our customers who hold fixed-rate mortgages. At TD, we have two prime rates: TD Mortgage Prime is the base rate for variable interest rate mortgages and TD Prime is the base rate for other products with a variable interest rate, like FlexLine and lines of credit.”

The increase applies only to the TD Mortgage Prime rate. The TD Mortgage Prime rate has been offered for more than a decade and this is the first time the bank has differentiated its prime rates.