Bank of Canada interest rate today

It is the Bank's target for the rate banks charge each other on overnight loans. Banks use it to set their prime rate, which in turn sets the rate on variable-rate mortgages and lines of credit.

The Bank of Canada announces its decision on eight set dates a year. On each date it can raise the rate, lower it or leave it where it is.

Not during your term. Your rate and payment stay the same until you renew. Fixed rates for new mortgages and renewals follow bond yields more than the policy rate.

Nothing changes in your coverage. But if your payment or balance changes, check that your coverage still matches your mortgage. Try the mortgage protection calculator.

It depends on how much change in your payment you could handle. A fixed rate gives certainty. A variable rate can cost less if rates fall and more if they rise. Vansure does not arrange mortgages, so talk to your lender or a mortgage broker about which suits you.

The prime rate is the rate the major banks use to price variable-rate mortgages and lines of credit. The current figure is in the table above and updates when the Bank of Canada publishes a new one.

A posted rate is a bank's official list rate. Lenders often offer a lower rate to win your business, so the rate you are quoted can be well below the posted one.