What is Prime Rate?

Prime rate is a floating rate that lenders use as the foundation for various lending products, like variable mortgage rates, credit cards and HELOCs.

The prime interest rate typically moves up and down with the Bank of Canada’s overnight target rate. For that reason, some people refer to it as “Bank of Canada prime rate.” That is incorrect because the Bank does not directly set prime. Lenders do.

People also refer to it as the “prime mortgage rate.” In Canada, very few lenders have a separate prime rate for mortgages; TD being one notable exception.

It’s important to remember that each lender sets its own prime rate. For that reason, lenders don’t always follow the Bank of Canada’s lead. In fact, there are multiple cases where lenders have not followed the Bank in dropping prime, much to the frustration of borrowers.

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Insurance sticker shock for condo owners

BC Financial Services Authority responds to hike in strata insurance premiums in an email to CTV News Vancouver:

As British Columbia’s independent financial services regulator, the BC Financial Services Authority monitors the marketplace closely.  We are also in constant contact with our regulatory partners.

We have received a small number of enquiries from the public and industry related to recent increases in strata insurance costs. While specific product pricing is a matter for the insurance industry, we are monitoring the situation carefully and invite the public and industry to contact us with any specific concerns.  Continue reading

Vancouver developers delay projects in sluggish condo market

Metro Vancouver’s sluggish residential real estate market has caused some developers to pull the plug on projects, while others either delay or “retool” housing developments or switch their firms’ focus to rental housing.

Pre-sale homebuyers at Richmond’s Alfa condominium project were left in the lurch in July when developer Anderson Square Holdings Ltd. sent them notices to say that it was cancelling their contracts for units in the under-construction building because the developer was “facing serious and significant circumstances beyond its reasonable control.” Continue reading

Camping in British Columbia ranges from rustic to luxurious

Crackling bonfires, lake dips, fishing, and wildlife viewing await when camping in British Columbia.

There’s an experience for all comfort levels, ranging from multi-day backcountry expeditions to upscale glamping in furnished yurts.  Camping options in British Columbia include a vast network of provincial and national parks, privately operated campgrounds and RV parks, and recreation sites and trails.

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