Clarien Bank Increase Base Lending Rates
Effective June 14, 2018, Clarien will be adjusting its BMD$ base lending rate by 25 basis points [0.25%] following the US Federal Reserve rate increase.
“The Bermuda Dollar Base rate for personal mortgages will increase from 4.25% to 4.50% and 4.50% to 4.75% for commercial mortgages,” a statement from the Bank said.
“Increases in rates are as outlined in the client lending agreement. The Bank is issuing notices to all lending clients regarding their repayment details.
“We continue to work with all of our clients on a regular basis to understand their current financial position, and encourage clients to contact their lending officer to discuss the changes to their repayment terms.
“Clarien will also make some rate increases to BMD and USD deposit products. For details, please refer to our published rate sheet available on clarienbank.com.”
This bank has been allowed by its regulator, the Bermuda Monetary Authority, to fund its Bermuda Dollar mortgages with U.S. dollars. The Federal Reserve raised its lending rate specifically to address the use of leverage/the use of debt to fund investments. Mr. Scott will not be the last domino to fall.