RBC Royal Bank Prime Rate

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RBC Prime Rate Today

RBC Prime Rate: 5.45%

Today’s RBC Royal Bank Prime Rate is current as of December 21, 2024

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The prime rate is what RBC uses to set the rate for many loans. A margin is added to the prime rate, which will result in a higher interest rate above the prime rate, or a discount might allow the borrower to have a rate below prime.

In Canada, each bank sets their own prime rate. This means that RBC will have its own prime rate, while TD will have its own TD prime rate. Typically, however, the prime rate of all major banks are the same. Changes in the prime rate are usually the same between banks as well, since the prime rate at banks will follow changes in the Bank of Canada’s policy interest rate. For example, if the Bank of Canada announces a rate hike of 1%, then you can expect RBC to increase its prime rate by 1% as well.

Some loan types are more likely to have an interest rate closer to the prime rate. This would be for secured loans, such as variable rate mortgages and HELOCs. Student loans for medical or dental students may commonly have an interest rate at or below prime. More risky loans, such as unsecured personal lines of credit, would have a higher interest rate than prime.

When there is a rate decision by the Bank of Canada, the major Canadian banks will usually announce their new prime rates the same day, with the new prime rate being effective the following business day. Variable rate borrowers will see an immediate impact of the new rate on their next regular payment.

The latest 0.5% decrease in RBC’s prime rate meant that interest rates will be going down for borrowers with a variable mortgage rate. Just how much would RBC’s latest prime rate change save you?

On a $500,000 mortgage, a 0.5% decrease in the prime rate would save you approximately $208.33 per month.

Enter your mortgage balance below to see how RBC’s latest prime rate change would affect your mortgage.

Best 5-Year Fixed Mortgage Rates in Canada

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1-Yr

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RBC’s prime rate is used to price their RBC variable mortgage rates. For example, RBC might be offering a 5-year variable mortgage at Prime - 0.20%. This means that the rate would be the RBC Prime Rate minus 0.20 percentage points. If the mortgage prime rate is currently 5.45%, then the variable mortgage rate would be 5.25%. This is from the following steps:

5.45% - 0.2% = 5.25%

High-ratio mortgages, which are insured mortgages with a down payment of less than 20%, might have a larger discount to prime. For example, RBC might offer high-ratio variable mortgages for a 5-year term with a rate of Prime - 0.45%. Not all mortgages will have a discount to the prime rate. Open mortgages usually have a higher rate due to their prepayment flexibility, with a premium added to prime, rather than a discount.

Since variable-rate mortgages are tied to RBC’s prime rate, any change that RBC makes to their prime rate will cause the interest that variable-rate borrowers pay to change too. If RBC’s prime rate recently decrease by 0.5%, then you can expect your variable rate to decrease by 0.5% as soon as the next business day.

In other words, you’ll see an immediate impact on your variable mortgage or loan tied to prime when the prime rate changes. This will cause the interest portion of your mortgage payment to change. If rates have increased, then you’ll be paying more interest with each payment. However, your mortgage payment amount will not change. While you won’t need to shell out more money each month when rates change, there is less money going towards your principal balance. This means that it will take you slightly longer to pay off your mortgage, increasing your mortgage amortization and interest costs.

Borrowers with an adjustable-rate mortgage will see an increase in their regular mortgage payments when the prime rate increases, and should budget for any increases. The benefit of adjustable-rate mortgages is that your principal repayments stay the same. This keeps you on track to your original mortgage amortization.

Lines of credit with RBC are only available with a variable interest rate based on RBC’s prime rate. This includes personal lines of credit, student lines of credit, and home equity lines of credit (HELOCs).

A Royal Credit Line is RBC's line of credit that can be either secured or unsecured. As an unsecured line of credit, there's no collateral required, but the interest rate will be higher than if it was secured. Unsecured lines of credit have a variable interest rate based on prime.

A secured line of credit that uses your home equity will allow you to get a lower interest rate and borrow more money. The amount that you can borrow can be up to 65% of your home's value, subtracted by the amount of any mortgages on the home. You can also get a secured line of credit using your investment portfolio as collateral.

RBC provides three unique LOCs for students, including undergraduate and graduate students, professional studies, and medical/dental. The Royal Credit Line for Students is for undergraduate, college, and trade school students, as well as students in graduate programs. It has a credit limit beginning at $5,000 and interest rates as low as prime + 1%, making it an alternative to government student loans.

Are you enrolled in a professional program, like certain Masters or health sciences programs? You could borrow from $5,000 all the way up to an impressive amount of $200,000 with RBC's Royal Credit Line for Students in Professional Studies. Plus, you’ll get a lower interest rate starting at prime.

If you're a medical or dental student, you’ll get an interest rate below prime with the Royal Credit Line for Medical and Dental Students. You can borrow up to $350,000 and still use your line of credit even after graduating!

The interest rate for RBC’s student line of credit varies based on your program. The current RBC student line of credit rates are shown below.

RBC Royal Credit Line for Students Rates

Current Interest Rates as of December 21st, 2024

Undergraduate and Graduate Students: Starting from 6.45% (Prime + 1%)

Professional Programs: Starting from 5.45% (Prime)

Medical and Dental Students: Starting from 5.20% (Prime - 0.25%)

If you're looking for a low-interest credit card with a variable rate, the RBC Visa CreditLine for Small Business offers a cost-effective solution with an interest rate as low as Prime + 2.9% to Prime + 11.9%. You can earn reward points from your purchases and enjoy extended warranty and purchase protection features on top of that! Your interest rate may change annually.

RBC Visa CreditLine for Small Business Rates

Current Interest Rates as of December 21st, 2024

Visa CreditLine: From 8.35% to 17.35% (Prime + 2.9% to Prime + 11.9%)

Best 5-Year Fixed Mortgage Rates in Canada

Select Mortgage Term:

1-Yr

2-Yr

3-Yr

4-Yr

5-Yr

Fixed

Variable

See More Rates

The RBC GIC rates below are current as of December 21, 2024.

Provider	3-Month	6-Month	9-Month	1-Year	1.5-Year	2-Year	3-Year	4-Year	5-Year
RBC	2.75% 3-Month	2.85% 6-Month	3.00% 9 Month	3.00% 1-Year	2.95% 1.5-Year	2.85% 2-Year	2.85% 3-Year	2.80% 4-Year	2.75% 5-Year

RBC’s Prime-Linked GIC, also called their Interest-Linked GIC, has an interest rate that changes based on RBC's prime interest rate. If RBC increases their prime rate, your GIC rate will increase too! It's a cashable GIC that requires a minimum investment of $5,000 for a 1-year term.

As a cashable GIC, your money isn't locked in for the entire GIC term. You can withdraw some or all of your money at any time. However, withdrawing within 29 days of buying the GIC will result in no interest being paid, plus a $25 fee being charged. The minimum withdrawal is $1,000, but your GIC must be at least $5,000 or more at all times. This GIC is eligible for CDIC deposit insurance.