We have been advised that one of our lenders are reducing their Variable Rate Discount to ZERO.  Meaning their Variable Rate will be Prime (2.70%) with no discount.  Most other lenders are still offering a discount of .30%-.50%.  This could be sign of the times.  

Their reasoning is below: 

Just to give you some insight as why these changes are happening is because the bank is trying to bring a better balance between the deposit portfolio and the credit portfolio, as well as dealing with Basel III liquidity requirements along with new sets of rules that are coming on capital requirements from the Federal Government for banks with Mortgage portfolio

While this isn’t the largest bank in the country, it is still interesting to note their reasons for this.  Stay tuned.