Current Interest Rates in Canada: How Every Rate Connects

Every borrowing rate in Canada traces back to one of two sources: the Bank of Canada's overnight rate or Government of Canada bond yields.

1. The Bank of Canada overnight rate

The Bank sets it on eight scheduled dates a year. It is the rate banks charge each other for overnight loans.

2. Prime rate

Big banks set their prime rate from the overnight rate. For years prime has been the overnight rate plus 2.20 points. See every change in our prime rate history table.

These rates move with prime:

• Variable-rate mortgages (prime minus or plus a margin)
• HELOCs (usually prime + 0.5% to 1%) — HELOC calculator
• Unsecured lines of credit (often prime + 2% to 5%)

3. Bond yields

Fixed mortgage rates follow Government of Canada bond yields — mainly the 5-year. That's why fixed rates can rise or fall weeks before a Bank of Canada announcement.

4. Rates that move on their own

• Personal loans — priced mostly on your credit. Banks roughly 7%–13%; alternative lenders up to the legal maximum of 35% APR.
• Credit cards — usually 19.99%–22.99% for purchases, regardless of prime.

What to do with this

• On a variable mortgage or HELOC, budget for a rate 1–2 points higher than today.
• Renewing soon? Read what to do before renewal and try the renewal calculator.
• Compare offers by APR, not the headline rate.

Today's figures, each with its as-of date, are on our rates page. Official figures are published by the Bank of Canada.