TD Canada trust bank is the first back announced to increase their mortgage prime rate to 2.85% that is .15 points increase.
Only the people with variable mortgage rates will be affected. Fixed term mortgage clients will remain unaffected. There is no change to Credit lines or any other product.
its hard to understand why TD Canada trust has done this where on the other hand some economists are predicting another rate cut by Bank of Canada. My personal thought on this is that all the Banks are afraid of losing money in the mortgage products as CMHC introduce these new rules for in mortgage business due to this all the banks has to put their own share of money as compared to previously all the risk was CMHC. Banks are not in the business to loose but to use your money and make huge profits.