We are writing to update you on a recent development concerning interest rates and how it affects our Credit Union.
Bank of Canada Rate Announcement
On July 24, 2024, the Bank of Canada announced a reduction in the overnight rate by 0.25%. This change is part of the Bank’s ongoing efforts to manage economic stability and growth. We understand that such announcements can raise questions about how they will impact your finances and our services.
Credit Union Prime Rate Decision
In December 2022, when the Bank of Canada increased rates by 0.50%, our Credit Union made a strategic decision to support our members by not adjusting our Prime Rate. In light of this being the seventh consecutive rate hike—culminating in a total increase of 3.50% over that period—we chose to maintain our Prime Rate at 7.50%. This decision, made at a significant cost to the Credit Union’s bottom line, was intended to alleviate some of the financial burdens on our members during a challenging economic period.
Current Decision
At this time, despite the Bank of Canada’s recent decision to lower the overnight rate by 0.25%, our Credit Union will not be adjusting our Prime Rate. This decision is based on a comprehensive review of our financial position and the broader economic context. Our primary goal remains to support our members’ financial well-being, and maintaining our current Prime Rate allows us to do so sustainably.
Supporting Our Members
We understand that financial circumstances can be challenging, and we are here to help. If you are currently struggling with your payments or have concerns about your financial situation, please do not hesitate to contact us. Our team is committed to providing personalized support and finding solutions that best meet your needs.
Contact Us
For any inquiries or to discuss your financial situation, please reach out to our Lending Department team at 416-238-5606. We are here to assist you and ensure that you receive the support you need.
Thank you for your continued trust and membership with our Credit Union. We are dedicated to serving you and supporting your financial goals.
