In short
The major Canadian banks’ prime rate was 4.45% before the Bank of Canada’s October 28, 2026 decision, which raised its policy rate by 25 basis points; banks usually move prime by the same amount the same day, so about 4.70%. The Bank of Canada policy rate is 2.50%. Prime is the base for variable-rate mortgages (quoted as "prime minus X") and lines of credit ("prime plus X"). Next Bank of Canada announcement: December 9, 2026.
What the prime rate changes for you
Variable-rate mortgage. Its rate is quoted as "prime minus X": when prime moves, your rate moves by the same amount. On a $400,000 mortgage amortized over 25 years, a 0.25-point move changes the payment by about $54 a month, if your payment follows the rate.
Home equity line of credit. Its rate is quoted as "prime plus X". As an example, at prime + 0.5 point, $50,000 drawn costs about $217 of interest a month, and each 0.25-point move changes that by about $10. See refinancing and HELOC.
Fixed-rate mortgage. It does not move during the term: it follows bond yields instead, and feels changes at renewal.
When does the prime rate move?
Each bank sets its own prime rate, but the major banks all track each other closely and almost always change it the same day the Bank of Canada changes its policy rate, by the same amount. Between announcements, it does not move. The table below lists the latest policy rate decisions, which prime followed.
| Date | Decision | Policy rate |
|---|---|---|
| October 28, 2026 | hike (+25 bps) | 2.50% |
| September 2, 2026 | hold | 2.25% |
| July 15, 2026 | hold | 2.25% |
| June 10, 2026 | hold | 2.25% |
| April 29, 2026 | hold | 2.25% |
| March 18, 2026 | hold | 2.25% |
| January 28, 2026 | hold | 2.25% |
| October 30, 2025 | cut (−-25 bps) | 2.25% |
The next announcement
The Bank of Canada will announce its next decision on December 9, 2026, at 9:45 a.m. Eastern. The three scenarios in numbers (cut, hold, hike) are on our policy rate page.
Negotiating the spread: what a mortgage broker compares
Prime is the same for everyone; the spread ("minus X" for a variable mortgage, "plus X" for a line) is negotiated on your file. A mortgage broker compares that spread across several lenders, with what comes with it: penalty, conversion to a fixed rate, line limit.
Frequently asked questions
What is the prime rate in Canada today?
The major Canadian banks’ prime rate was 4.45% before the Bank of Canada’s October 28, 2026 decision, which raised its policy rate by 25 basis points; banks usually move prime by the same amount the same day, so about 4.70%.
What is the difference between the prime rate and the policy rate?
The policy rate is the Bank of Canada’s reference rate (2.50%). Prime is the rate banks set for their loans; it follows the policy rate and moves by the same amount on decision day.
What does the prime rate change for my mortgage?
If your mortgage is variable ("prime minus X"), your rate follows prime: on $400,000, 0.25 point changes the payment by about $54 a month. A fixed-rate mortgage does not move until renewal.
When will the prime rate change?
No sooner than December 9, 2026, the next Bank of Canada announcement: the major banks usually adjust prime the same day, by the same amount as the policy rate.