Clarien Bank increases base lending rates
For the third time in six months, Clarien will be adjusting its Bermuda dollar base lending rate reflecting changes to the federal funds rate.
Effective December 1, the bank’s base lending rate will increase by 50 basis points (0.50 per cent), and the USD prime base lending rate by 75 basis points (0.75 per cent) following the US Federal Reserve rate increase on September 21.
That will mean that personal loans will increase from 5.0 per cent to 5.5 per cent, commercial loans from 5.25 per cent to 5.75 per cent and USD prime mortgages will increase from 5.50 per cent to 6.25 per cent.
Clarien last adjusted its Bermuda dollar base lending rate by 50 basis points (0.50 per cent), and its USD prime base lending rate by 150 points, on September 1, after the US Federal Reserve rate increase on July 27.
That was following an increase in the Bermuda dollar base rate for personal mortgages and the rate for commercial mortgages on June 1.
Clarien clients will receive letter notices specifically detailing the change applicable to their loan. In certain cases the regularly scheduled loan payment will increase to ensure that the loan is repaid by the scheduled maturity date.
Communication regarding the change will also be made available to internet banking clients via iBank.