Understand What Today’s Rates Mean For You
Interest rates play a big role in your mortgage, but the numbers you see online are just benchmarks, not personalized offers.
Your actual rate depends on your financial profile, property, and the lenders available to you.
What matters most is how these rates affect your options and long-term strategy, not just the number itself.
Bank of Canada Overnight Rate
The overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or “overnight”) funds among themselves to settle accounts. The Bank of Canada sets a target level for that rate, on a scheduled basis.
Prime Rate of Interest
The prime interest rate, or prime lending rate, is largely determined by the Central Bank rate, which is the overnight rate that banks use to settle accounts between them. The Prime rate is the rate that banks lend to their very best business / commercial customers.
