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Well, we've received the news that the Bank Prime Rate is now 6%. I've had many discussions with people alike expecting to hear that bank lending rates have also decreased. Not so fast. Typically, Lenders (Banks, et al) adjust their "prime" rate once a month. Rational is that it would take too much administrative work to change their variable rate mortgages simultaneously with a decrease in prime rates.

Depending on your lending institution you may benefit immediately with a decrease in the prime rates (variable rate products or secured lines of credit); or you will wait a month to three months before the decrease is reflected. Conversely, if the prime rate increases, one would benefit with a delay in a hike to their mortgage payment (variable rate product or secured lines of credit). It is an important detail that I discuss with all my clients when planning their mortgage strategy.