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Bank of Canada interest rate today

Policy rate and prime rate straight from the Bank of Canada's data service, as of .

Quick Answer

The Bank of Canada's policy interest rate is 2.25%, and the prime rate Canadian lenders use for variable-rate borrowing is 4.45% (September 24, 2026). The next scheduled announcement is October 28, 2026. A 0.25 point move changes the payment on a $500,000 variable mortgage by roughly $67 a month.

Policy interest rate

2.25%

Target for the overnight rate

Prime rate

4.45%

What variable mortgages and HELOCs are priced from

Next announcement: October 28, 2026 at 9:45 a.m. Eastern. The Bank sets the rate on eight scheduled dates a year.

What this rate means for your mortgage

Prime follows the policy rate, usually within a few days of a decision, and variable-rate mortgages and HELOCs are priced as prime plus or minus a spread. At a typical discount of prime minus 0.9 (3.55%), a $500,000 mortgage over 25 years costs about $2,510 a month:

  • If the Bank cuts 0.25: about $2,444 a month, roughly $66 less
  • If the Bank raises 0.25: about $2,576 a month, roughly $67 more

On a variable mortgage with a fixed payment, a move changes how much of each payment goes to principal instead — the payment holds and the amortization stretches. Model your own balance and rate with the mortgage calculator, or see what a rate shock does to a line of credit in the HELOC calculator.

Fixed rates don't follow this rate. They track Government of Canada bond yields, which move on inflation and growth expectations, often before the Bank acts. That's why fixed mortgage rates can fall in the weeks before a cut, or rise despite one — the trade-off is covered in our fixed vs variable guide.

Recent policy rate changes

Effective Change New policy rate
October 30, 2025 -0.25 2.25%
September 18, 2025 -0.25 2.50%
March 13, 2025 -0.25 2.75%
January 30, 2025 -0.25 3.00%
December 12, 2024 -0.50 3.25%
October 24, 2024 -0.50 3.75%
September 5, 2024 -0.25 4.25%
July 25, 2024 -0.25 4.50%

What it means for savings and GICs

Savings and short-term GIC rates track the policy rate, but banks cut them faster than they raise them. With the policy rate at 2.25%, competitive high-interest savings accounts pay roughly 2% to 3% on an ongoing basis and short promotional rates run higher — see how high-interest savings accounts work and current GIC options.

Where these numbers come from

Both figures come from the Bank of Canada's Valet data service: the target for the overnight rate (V39079) and the prime rate (V80691311). The page loads the latest values from that service when you open it, so the rate above is current even between our updates. Official source: Bank of Canada interest rates.

Frequently Asked Questions

What is the Bank of Canada interest rate right now?

The target for the overnight rate — the policy interest rate — is 2.25% as of September 24, 2026. Canadian lenders' prime rate, which is what variable-rate borrowing is priced from, is 4.45%. These figures come from the Bank of Canada's own data series and this page refreshes them from that source.

When is the next Bank of Canada interest rate announcement?

October 28, 2026. The Bank announces the policy rate on eight scheduled dates a year, at 9:45 a.m. Eastern.

How does the policy rate affect my mortgage?

Directly, if your rate floats. Prime moves with the policy rate, usually within days, and variable-rate mortgages and HELOCs are priced as prime plus or minus a spread. On a $500,000 mortgage at 3.55% over 25 years, a 0.25 point move changes the payment by roughly $67 a month. Fixed rates work differently: they follow Government of Canada bond yields, which move ahead of the Bank's decisions.

What is the difference between the policy rate and the prime rate?

The policy rate is set by the Bank of Canada for overnight lending between financial institutions. The prime rate is what individual lenders charge their best customers, and it sits above the policy rate — currently 4.45% versus 2.25%, a gap of 2.20 points. Your variable mortgage, HELOC or line of credit is priced off prime, not off the policy rate directly.

Do savings rates follow the Bank of Canada rate?

Yes, but not symmetrically. High-interest savings account rates and short-term GIC rates tend to fall quickly after a cut and rise more slowly after a hike. Promotional savings rates move fastest of all, because they are repriced constantly.

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