Canada’s prime rate is the rate that most major banks use to establish their lending rates. Read on to find out what the prime rate in Canada is, how it is determined, and most importantly, how it affects you.
What is the Prime Rate in Canada?
The prime rate, formerly known as the prime lending rate, is the annual interest rate that financial institutions charge their most creditworthy corporate customers. However, lenders also use this key interest rate to determine the bank rates for variable loans, prime rate mortgages, and credit cards, among other products. Currently, the prime rate in Canada is 6.60%.