Pine prime rate changes FAQ
When Pine’s Prime Rate changes, we realize you may have some questions about how this affects your adjustable rate mortgage with us.
Pine’s prime rate
Effective date
Pine Prime Rate is the variable annual interest rate published by us from time to time as our Pine Prime Rate and is the interest rate we will use as a reference to determine the interest rate that we will charge to customers for certain credit products provided by us in Canada.
Pine's historical prime
Date
Pine prime rate
Question? We've got answers.
When does Pine apply the rate change to my mortgage?
When will my payment amount adjust?
Your payment will adjust on your second regularly scheduled payment following the rate change date.
Monthly payments example:
For monthly payments, (assuming your payments are on the first of the month), your August 1st payment will not change. Your September 1st payment will reflect the new payment amount.
Weekly Payments example:
For weekly payments, (assuming your payment is on a Friday), your payment on Friday, July 14th, will not change. Your next weekly payment on Friday, July 21st, will reflect the new payment amount.
If my interest rate increased, what happens to the payment made on the first payment after the interest rate change?
Once the interest rate has gone up, less of that payment will be applied to the principal balance for that one payment.
Am I able to adjust my payment frequency/due date/amount now before the new rate impacts my payment amount?
What will my new rate be with the change in Prime?
Your new rate will be Pine Prime Rate, plus or minus any rate premium, or rate discount received at the time of the loan advance, as stated on your mortgage commitment.
Example:
If your mortgage was Pine Prime - 0.90%, then your new rate will be the new Pine Prime -0.90% (the discount amount does not change).
Old rate
Pine Prime (6.95%) - 0.90%
Old rate was: 6.05%
New rate
Pine Prime (7.20%) - 0.90%
New rate would be: 6.30%
I increased my mortgage payment to a set amount. Will that be affected?
Yes. Your new mortgage payment is based on your mortgage balance, new interest rate and remaining amortization on the mortgage. If you wish to re-set your payments, please contact Pine.