The prime rate at Canada's major banks is currently about 4.45%, based on the Bank of Canada's target overnight rate of 2.25%. Prime moves whenever the Bank of Canada changes its policy rate — track the source rate live on our Bank of Canada rate tracker.
Canada's prime rate is about 4.45% (July 2026). Banks set prime at the Bank of Canada's overnight rate (2.25%) plus roughly 2.2 points, so it moves within days of every rate decision. Your variable mortgage and HELOC are priced off it.
The prime rate (or "prime lending rate") is the interest rate Canada's big banks use as a baseline to price variable-rate loans — variable mortgages, home-equity lines of credit (HELOCs), and many personal and business loans. Each bank sets its own prime, but they move in lockstep and are almost always identical across the Big Six.
Prime is tied directly to the Bank of Canada's target for the overnight rate. Historically, Canadian prime sits about 2.2 percentage points above the policy rate. So with the policy rate at 2.25%, prime works out to roughly 4.45%. When the Bank of Canada cuts by 0.25%, prime typically drops by 0.25% within days; when it hikes, prime rises the same way.
If you have a variable-rate mortgage or a HELOC, your interest cost is usually quoted as "prime minus" or "prime plus" a margin — so it moves with prime, and therefore with the Bank of Canada. A prime cut lowers your carrying cost; a hike raises it. Fixed-rate mortgages aren't tied to prime during your term, but the rate you're offered at renewal is shaped by the same trend. Figures here are estimates and vary by lender — confirm with your bank.
About 4.45%, based on the Bank of Canada's 2.25% policy rate (banks set their own prime, typically policy rate + 2.2 points).
Yes. Prime moves almost immediately whenever the Bank of Canada changes its target overnight rate.
The Bank of Canada sets the overnight rate; banks add roughly 2.2 points to get prime, which they use to price variable loans.