Bank Of Butterfield Adjusts Loan Base Rates

March 15, 2017 | 19 Comments

The Bank of N.T. Butterfield & Son Limited announced that, in alignment with today’s 25 basis point increase in the US Federal Funds Rate, the Bank has adjusted its Bermuda Dollar Base Rates on Bermuda Dollar loans.

“The Bermuda Dollar Base Rate for residential mortgages and consumer loans will increase from 4.00% to 4.25%. The Bermuda Dollar Base Rate for corporate loans will increase from 4.25% to 4.50%,” a spokesperson said.

“The rate increase on consumer and corporate loans takes effect immediately. The rate increase on residential mortgages will take effect on 14 June 2017. Butterfield is not adjusting deposit rates at this time.”

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  1. skeptic says:

    Didn’t take them long, 45 minutes maybe.This is a bizarre world where the US has rapid growth and return of inflation, yet in Bermuda we are still struggling to recover and the banks insist on passing further burden to mortgage holders and impose a fresh constraint on the moderate growth of our deflated real estate sector. Vultures……

    • David R says:

      I bet they will apply the increase across the board even though previous loans/mortgages were obtained from the previous rate.

      • Sandgrownan says:

        Yup, and entirely predictable given current Butterfield leadership.

        Just what a fragile, recovering economy needs is our local community bank putting on the squeeze.

        They really are wankers.

      • Quinton Berkley Butterfield says:

        Bermuda doesn’t have fixed rates which is criminal

        • Money Saver! says:

          HSBC offers a 5 year fix rate – im getting on that Looks like the safest option right now.

  2. Wonder says:

    So it took them weeks to adjust when it was going down in the US… but immediate once it was increased. It’s a load of BS

  3. sage says:

    And interest rates on savings?

    • sandgrownan says:

      I think you know the answer to that. Remember, Banks charge you for the privilege of you lending them your money.

  4. Comfortably numb says:

    Daylight robbery: the bank pays me .25% on my savings and then lends my savings out at 4.50%. The Mafia have competition!

  5. Hawle says:

    Shouldn’t any increase in interest rates for a mortgage correspond with an increase in the interest rate I get on my savings?

    • Bermyluv says:

      They should increase their savings rates on CDs or call accounts but demand savings are a different thing.

    • Longtail says:

      Not when you are dealing with banksters………

  6. JUNK YARD DOG says:

    A train wreck is when two trains collide head on with all the cars in both directions being destroyed.

    Here we see another train wreck as once again big business drives up the cost of living for the working man and not forgetting our seniors, this is compounded by the fact that even today, the cost of living exceed the ability of people to keep up even with the bare essentials of transportation; fuel ; power; and food .

    What ever you do don’t get sick and don’t wreck your transportation.

    Local business is feeling the pinch as the stores are people empty with the little guy boarding up the shutters.

    Frankly we see that no body wants to give an inch, with our neighbors to our west leading the charge, their economy can take it, but not ours.

    Bermuda as we all know and is dependent nation we are a service industry and when the client does not show up, we are done for.

    We only sell what a visitor can put in a shopping bag,same stuff they can buy in the malls in the USA. Even a bottle of happiness costs more.

    We dump our cruise ship visitors on a beach with out showing them the real reason why they come here in the first place, why ? because there is nothing going on here,Family entertainment is not ” Pub Crawling” up and down Front street.

    Are we heading towards our own home grown recession?

    More money is leaving this island faster than it’s coming in our national debt proves that as we are not self sustaining.

    BERMUDA IS A BUSINESS !

    BERMUDA WAKE UP !we are ” Living on the skin of the rice pudding”.

    BERMUDA’S GOT TALENT !

  7. Unreal says:

    Great, how about a raise for your staff?!? You’re ensuring the average Bermudian cannot buy a home or maintain their current mortgage in this economy. Thank you.

  8. Zevon says:

    It’s because the spread has been historically thin. It’s going to take a couple of Fed Fund rate rises before it will affect savings rates.

  9. Quinton Berkley Butterfield says:

    Since they are getting more money, will they eliminate the 25 cent charge for every online transfer that I MYSELF do? I mean, no other bank charges this.

  10. Navin Johnson says:

    And how long before the rate on Bermuda’s massive debt goes up?

  11. JUNK YARD DOG says:

    If you go to the city and look around notably the biggest buildings are owned the banks and the insurance companies some with more than one location, if that is not an exhibition of profit and growth I do not know what is ,both organizations are big business which are too big to fail .

    The Bermuda law protects both organization by requiring compulsory insurance on motor vehicles with the banks have exclusive rights on currency exchange ,in perpetuity.

    Interests Rates over the past years have not been favorable to the general public, you could blame that on the last world recession and too many wars that cost money.

    For the last 10 years the value of money has dropped considerably to stimulate the economy ,if a business fails the bank looses a big customer,by loosening up the the purse strings of the general public adds grease to the almighty wheel.

    The cost of borrowing money controls our economy for example, A new car duty paid in advance ,that sits on the lot decreases in value every day caused by the interest rate of the day, on unsold stock that sits on the merchants shelves are affected in the same way ,virtually every marketable item winds up lining the pockets of the banks and local insurance companies.

  12. Jackie says:

    The Bermuda Dollar Base Rate for Consumer Loans has
    increased from 3.75% to 4.00% effective 14 December 2016.
    The Bermuda Dollar Base Rate for Corporate Loans has
    increased from 4.00% to 4.25% effective 14 December 2016.
    The Bermuda Dollar Base Rate for Residential Mortgages will
    increase from 3.75% to 4.00% effective 6 March 2017.

    This means a half a percent increase!

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