We all need to lend or borrow money at some point in our lives. But sometimes banks them selves need to borrow money. When a bank borrows money it's called benchmark lending. Banks borrow the money they need from the Federal Bank. The Federal Bank lends the money with an interest rate just like in normal loans and this is called benchmark rate.
The benchmark lending rate is normally used between banks and other lenders. The bank will also use the benchmark lending rate as a way to determine the prime rate for their other financial products. The prime rate is popular in Canada for benchmark lending.
The benchmark lending rate is used to help people recover/avoid predatory lending. Banks related to the public sector, usually cut their benchmark prime lending rate to 200 basis points while private banks cut up to 50 basis points.
There is also a company called "Benchmark Lending Group". The benchmark lending group is a direct mortgage lender enabling you to secure a home mortgage or refinance your existing mortgage.
The benchmark lending group has been in service for many years and their commintment to excellent service seperates them from the rest. The benchmark lending group also has some great rates and programs.
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