Clarien Bank increases base lending rates
Clarien will adjust its Bermuda dollar base lending rate by 50 basis points (0.50 per cent) on September 1, following the US Federal Reserve rate increase on July 27, the bank has announced.
It will mean that Clarien’s BMD$ base lending rates for personal mortgages will rise from 4.50 per cent to 5.00 per cent.
The base lending rates for commercial mortgages will rise from 4.75 per cent to 5.25 per cent.
The bank said clients will receive letter notices specifically detailing the change applicable to their loan. In certain cases, the regular scheduled loan payment will increase to ensure that the loan is repaid by the scheduled maturity date.
Clarien said their team is available to answer questions, provide additional information or discuss the terms of a specific loan.
The bank will also be adjusting other lending rates as a result of the various US Federal Reserve interest rate increases that have taken place during 2022.
The interest rate applicable to overdraft facilities will increase by 100 basis points (1.00 per cent), meaning commercial overdrafts will increase from 4.25 per cent to 5.25 per cent and retail rates will rise from 4.0 per cent to 5.0 per cent.
Clarien will also be adjusting its USD prime base lending rate by 150 basis points (1.50 per cent), the result of various US Federal Reserve interest rate increases that have taken place during 2022.
The USD prime rate goes from 4.00 per cent to 5.5 per cent
For term deposit rates, on August 5 Clarien increased its USD Premium Demand interest rate from 0.15 per cent to 0.25 per cent.