Clarien Bank Increase Base Lending Rates
Effective June 1st, 2022, Clarien will be adjusting its Bermuda Dollar base lending rate by 50 basis points [0.50%] following the US Federal Reserve rate increase earlier this month.
A spokesperson said, “The Bermuda Dollar Base rate will increase as follows:
| BMD$ | Increase from | Increase to |
| Personal Mortgages | 4.00% | 4.50% |
| Commercial Mortgages | 4.25% | 4.75% |
“Clients with Bermuda dollar loans 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.
“Our team is available to answer your questions, provide additional information or discuss the terms of your loan. Please contact Clarien’s Service Centre on 441-296-6969 or servicecentre@clarienbank.com. Communication regarding the change will also be made available to internet banking clients via iBank.
“Clarien has recently updated and increased Term Deposit rates and frequently reviews rates to ensure our customers receive competitive rates on both loan and deposit products. For additional information regarding Clarien Bank rates and fees, please visit clarienbank.com.”
Bermuda banks must be required to MATCH! It is not fair to the public to allow banks to fund loans, particularly long-term mortgages, on a floating rate basis. This current inflation event will get much worse before it gets better. The government and the regulator are of little use to the public – get ready to pay much larger interest rates for years to come.
Not fair? If you don’t like the terms being offered don’t borrow money from Clarien!
Unfortunately its about the current homeowners that have 15-30 year terms that now will have to pay more monthly even if struggling pre/post Covid .
Maybe they can transfer their mortgage but likely all the banks will be the same .