Prime Rate in Canada Today

What the prime rate is

Prime, also called the prime lending rate, is the interest rate a bank or other lender uses as the base for its loan products. Each financial institution sets its own, based on what it costs it to raise money. [2]

The number at the top of this page is the Bank of Canada's weekly reading of the six largest banks' posted prime. Where they differ, the Bank takes the most common rate among them. [1]

How prime relates to the Bank of Canada's rate

The Bank of Canada's policy interest rate, its target for the overnight rate, is the rate it wants financial institutions to charge each other for one-day loans. The public does not borrow in that market, but the policy rate is the starting point for many other rates, including the prime rate banks use for loans such as mortgages and lines of credit. [6]

The Bank of Canada does not set mortgage rates. Changes in its policy rate lead to similar changes in prime, which banks use to price variable-rate mortgages. [7]

The Bank announces its policy rate on eight fixed dates a year, and in special circumstances it can move at another time. Since 2021 a change takes effect the day after it is announced. [4] [6] The scheduled announcements through 2027 are at 9:45 a.m. ET. [5] The next one is October 28, 2026 at 9:45 a.m. ET.

What moves with prime

• Variable-rate mortgages. The rate is set relative to your lender's prime, for example prime plus 1%, so it moves when prime moves. [8]
• Home equity lines of credit (HELOCs). Most are variable and based on the lender's prime. Your lender's prime may change when the Bank of Canada changes its policy rate, and that can raise your minimum payment. [9]
• Lines of credit. The rate is usually variable. [10] The Bank of Canada names lines of credit among the loans priced off prime. [6]

A fixed-rate mortgage does not move with prime during its term; the rate is set until renewal. [7]

Why your bank's prime can differ

Each lender sets its own prime, so a variable rate follows your lender's prime, not the Bank of Canada's figure. [1] [9] Lenders name the prime their loans follow: TD's variable-rate mortgages are based on the TD Mortgage Prime Rate [11], and the rate on CIBC's variable-rate mortgages changes whenever CIBC Prime changes. [12]

Each big bank posts its own prime on its website:

• RBCPrime and other rates
• TDMortgage rates (TD Mortgage Prime Rate)
• ScotiabankRates (Scotiabank Prime Lending Rate)
• CIBCMortgage rates (CIBC Prime)

What to do when prime moves

• Know which kind of variable you have. With adjustable payments, your payment changes with the rate. With fixed payments it stays the same, more of it goes to interest when rates rise, and your contract lists the trigger point at which the lender may raise it. With fixed payments, rising rates can reach the point where none of your payment goes to principal, so the Financial Consumer Agency of Canada says to contact your lender as soon as possible to discuss your options. [8]
• Fixed or variable at renewal. The FCAC suggests asking whether your budget could handle higher payments if rates rise; if not, a fixed rate may suit you better. [8] Compare your options in our renew or switch guide.
• Carrying a HELOC? Make sure you could afford higher payments if rates change. [9] See how we set up HELOCs and equity refinances.
• Run the numbers. Try a new rate in the mortgage payment calculator, or see what leaving a mortgage early would cost with the penalty calculator.
• Talk it through. Tell us about your mortgage and we will call you back: contact us.