Monday, May 19, 2014
Bank of Canada Key Interest Rate, Bank of Canada Prime Rate and Bank Prime Rate what's the difference?
The Bank of Canada Sets the Key Interest Rate and this is the target overnight interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves - it is this rate that the banks determine all of their lending rates to the public. This rate is also known as the Bank of Canada Prime Rate
Typically, banks charge 2% above the Bank of Canada Prime Rate for their lines of credit and for their best customers.
The current Bank of Canada Prime Rate is 1% Thus, the Bank Prime Rate today is 3%
The Bank of Canada has kept the current Bank of Canada Prime Rate at 1% since July of 2010
See the current rate at this page:
more on the definitions of Prime Rate, Bank Rate, Target Rate and more
All the best!
For more information please contact A. Mark Argentino
A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1