Canada Prime Rates
Today's Prime Rate:7.20%
Current Bank Prime Rates
| Bank | Prime Rate |
|---|---|
TD | 7.20%* |
RBC | 7.20% |
CIBC | 7.20% |
BMO | 7.20% |
Scotiabank | 7.20% |
National Bank | 7.20% |
Latest Update: April 10, 2024
The Prime Rate stays at 7.2%, as the Bank of Canada holds the policy rate at 5%.
Inflation reached 2.8% in February 2024 from a multi-decade high of 8.1% in June 2022. It is still higher than the 2% target of the Bank of Canada (BoC) but is heading in the right direction.
The Bank of Canada is likely to start lowering its rates soon:
- If we annualize the seasonally adjusted 9-month inflation between May 2023 and February 2024, we arrive at a rate of 2.8%.
- Also, annualized inflation over the past 3 months was 1.3%.
- The unemployment rate has risen from 5% at the beginning of 2023 to the current level of 6.1%.
- Forward indicators suggest that excess demand is no more, and once again, the Canadian economy is in excess supply of goods and services .
- We should see inflation decline and rate cuts by the BoC soon.
The prime rate has risen from 2.45% in March 2022 to the current prime rate of 7.2%. As inflation is heading to the target and as the largest contribution to inflation is shelter whose shortage cannot be resolved by monetary policy, we expect prime rates to decline over the coming quarters. The Prime Rate is at its highest level over the past 22 years. This rate is burdensome on those with variable-rate mortgages, HELOCs, and lines of credit.
What is Canada's prime rate today?
The Prime rate in Canada is currently 7.20%. The Prime rate is the interest rate that banks and lenders use to determine the interest rates for many types of loans and lines of credit. These can include credit cards, HELOCs, variable-rate mortgages, car and auto loans, and much more. If you have any of these loans, changes in the prime rate will also change your debt payments and thus your GDS and TDS ratios.
Today’s Mortgage Rates
| HELOC | 1-Year Fixed | 2-Year Fixed | 3-Year Fixed | 5-Year Fixed | 5-Year Variable | |
|---|---|---|---|---|---|---|
| Lowest Rates | % | 6.39% | 5.44% | 4.79% | 4.69% | 5.9% |
| Average Rates (10 Lenders) | -- | |||||
| 30-Days Change of Average Rates | -- |
| Term | Lowest Rates | Average Rates (10 Lenders) | 30-Days Change of Average Rates |
|---|---|---|---|
| HELOC | % | -- | -- |
| 1-Year Fixed | 6.39% | % | NaN bps lower |
| 2-Year Fixed | 5.44% | % | NaN bps lower |
| 3-Year Fixed | 4.79% | % | NaN bps lower |
| 5-Year Fixed | 4.69% | % | NaN bps lower |
| 5-Year Variable | 5.9% | % | NaN bps lower |
The basket of 10 lenders includes: CIBC, BMO, TD, Scotiabank, RBC, National Bank, Desjardins, nesto, Tangerine, First National
*Prior to March 2024, HSBC Canada was included in the basket
Prime Rate and Bank of Canada Overnight Rate
(1935 - 2024)
Canada Prime Rate Changes Since 2010
| Effective Date | Prime Rate | Change |
|---|
Canada Bank Prime Rates
RBC Royal Bank Prime Rate
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Scotiabank Prime Rate
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TD Bank Prime Rate
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CIBC Prime Rate
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BMO Prime Rate
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National Bank Prime Rate
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