If you’ve been keeping an eye on borrowing costs, you’re not alone — Canada’s prime rate is a number that quietly drives everything from mortgage payments to credit card bills. Right now, all five of the Big Six banks are showing the same figure: 4.45%. That alignment didn’t happen by accident, and it matters more than most Canadians realize. Here’s what you need to know about prime rate in Canada today, where it came from, and what it might mean for your wallet.

4 related posts

Current Prime Rate: 4.45% ·
Bank of Canada Policy Rate: 2.25% ·
TD Prime Rate: 4.45% ·
BMO Prime Rate: 4.45% ·
CIBC Prime Rate: 4.45%

Quick snapshot

1Confirmed facts
  • All Big Six banks are aligned at 4.45% (NerdWallet)
  • Bank of Canada held overnight rate at 2.25% on April 29, 2026 (Bank of Canada)
2What’s unclear
  • Exact timing of next Bank of Canada rate decision
  • Whether prime will dip below 4.00% in 2026
3Timeline signal
4What’s next
  • Next policy rate review expected mid-2026
  • Mortgage holders should monitor overnight rate signals closely
Key figures shaping Canada’s prime rate today
Metric Value Source
Prime Rate Today 4.45% WOWA.ca
Effective Date October 30, 2025 BMO
Bank of Canada Policy Rate 2.25% Bank of Canada
Next Review TBD (mid-2026) Ratehub.ca

What is TD Bank prime rate today?

Current TD prime rate

TD’s prime rate currently sits at 4.45%, effective October 30, 2025, according to the bank’s official rates page. This represents a notable drop from the 4.70% that was in place as recently as September 18, 2025, and a sharper decline from the 5.20% TD charged on January 30, 2025.

Comparison to Bank of Canada

The Bank of Canada’s target overnight rate is the engine that drives prime rates across the system. As of April 29, 2026, that policy rate stands at 2.25% (Bank of Canada’s daily digest), a level that has kept prime anchored at 4.45% for all Big Six lenders.

The prime rate has mirrored that stability at 4.45% because the gap between policy rate and prime typically holds around 2.20 percentage points.

The catch

TD also publishes a separate “prime mortgage rate” of 5.1%, which applies to some variable-rate mortgage products. This is not the same as the headline prime rate — borrowers should confirm which rate their product actually uses.

Is the Canadian prime rate going down?

Recent Bank of Canada decisions

The Bank of Canada has been in an aggressive easing cycle since mid-2024. From June 2024 through October 2025, the central bank delivered nine consecutive rate cuts, bringing the overnight rate from 5.00% down to 2.25% (Ratehub.ca). That pace of cuts has now paused.

Forecast indicators

As of late April 2026, there is no signal that the Bank of Canada is preparing another cut in the immediate term. The policy rate has been held at 2.25% through consecutive daily digest publications, and the prime rate has mirrored that stability at 4.45%.

Looking ahead, some analysts reportedly suggest that a return to the sub-3% prime rates seen in the early 2020s is unlikely before 2027 at the earliest, given current economic conditions. However, these are forward-looking projections, not confirmed outcomes.

Why this matters

Variable-rate mortgage holders have benefited from the descent from 5.20% to 4.45%, but further relief is no longer automatic. The next move — up or down — will depend on inflation data and employment figures that the Bank of Canada has not yet published.

What is the current mortgage rate in Canada today?

Prime-linked mortgage rates

Most variable-rate mortgages in Canada are tied directly to the prime rate. With prime at 4.45%, the best available variable mortgage rates cluster around that level or slightly below, depending on the lender and borrower profile. The TD prime mortgage rate specifically, at 5.1%, applies to some of TD’s own variable products — creating a spread that borrowers should verify in their mortgage documents.

Variations by lender

While all Big Six banks now share the same headline prime of 4.45%, the actual rates offered to new mortgage clients vary. Some credit unions and mono-line lenders can offer rates 20–50 basis points below prime for well-qualified borrowers, according to rate comparison data from NerdWallet.

For a $500,000 mortgage at a 4.45% rate amortized over 25 years with a 5-year term, monthly payments would be roughly $2,750 — a figure that drops to approximately $2,550 if the rate falls to 4.00%.

The implication: borrowers seeking the lowest variable rates should look beyond the Big Six to mono-line lenders and credit unions, where competition can drive offers below the industry benchmark.

What is Bank of Canada Prime rate today?

Policy rate vs prime

The Bank of Canada does not set a “prime rate” directly. Instead, it sets the target overnight interest rate, which is the rate at which banks lend to each other overnight. The prime rate is the rate that each individual bank sets for its best customers, and it typically sits about 2.20 percentage points above the Bank of Canada’s overnight rate. That spread is why prime is at 4.45% while the policy rate is at 2.25%.

What this means: when the Bank of Canada adjusts its policy rate, commercial banks adjust their prime rates accordingly, usually within days.

Next announcement date

The Bank of Canada publishes its policy rate decisions on a scheduled basis, with the next expected announcement in mid-2026. Until then, the daily digest provides the most current confirmation that the rate remains at 2.25%.

How low will interest rates go in 2026?

2026 forecasts

The most recent available analysis from industry sources suggests that prime rate is unlikely to fall below 4.00% during 2026. This view is supported by the current pause in the Bank of Canada’s easing cycle and by economic indicators that have not yet created conditions for another round of cuts.

Some forecasts published in early 2026 reportedly projected a gradual decline toward 3.75% by late 2026 or early 2027, though these projections carry inherent uncertainty and are subject to revision based on incoming economic data.

Mortgage rate projections

Variable mortgage rates track prime, so mortgage holders should watch the Bank of Canada’s overnight rate signals rather than prime in isolation. Fixed mortgage rates, by contrast, are priced off bond markets and do not move in lockstep with prime.

The pattern: with the easing cycle paused and no confirmed timeline for the next cut, borrowers should expect prime to remain in the 4.00%–4.50% range through 2026.

Bottom line: Variable-rate borrowers face a plateau — further rate cuts are no longer guaranteed, and the window of declining costs has temporarily closed. Prospective home buyers: the most favorable fixed-rate deals are available now, before any further policy shifts.
Prime rates across major Canadian lenders
Lender Prime Rate Effective Date Source
TD Canada Trust 4.45% October 30, 2025 TD
BMO 4.45% October 30, 2025 BMO
CIBC 4.45% October 30, 2025 WOWA.ca
National Bank 4.45% October 30, 2025 National Bank
Scotiabank 4.45% October 30, 2025 NerdWallet
RBC 4.45% October 30, 2025 NerdWallet

Timeline of recent prime rate changes

The trajectory below captures the most significant recent moves in Canada’s prime rate, based on Bank of Canada data and individual bank announcements.

Five key moments in Canada’s recent prime rate history
Date Event Source
January 30, 2025 TD prime rate stood at 5.20% TD Canada Trust
March 13, 2025 TD prime rate adjusted to 4.95% TD Canada Trust
September 18, 2025 TD prime rate at 4.70% TD Canada Trust
October 30, 2025 Big Six banks align at 4.45% BMO
April 29, 2026 Policy rate maintained at 2.25%; prime stays at 4.45% Bank of Canada

What we know for certain

  • All Big Six banks charge 4.45% prime as of May 2026
  • The Bank of Canada overnight rate is 2.25% as of April 29, 2026
  • Prime has remained at 4.45% since October 30, 2025
  • TD’s separate prime mortgage rate is 5.1%

What remains uncertain

  • Whether prime will fall below 4.00% in 2026
  • Exact date of next Bank of Canada announcement
  • Whether the pause in easing continues through mid-2026

The Bank of Canada has held the target overnight interest rate at 2.25 percent, maintaining the policy rate that influences prime rates across the financial system.

— Bank of Canada Daily Digest (Canada’s central banking authority)

The prime rate in Canada is 4.45 percent as of May 4, 2026, influenced by the Bank of Canada overnight rate.

— Ratehub.ca (independent Canadian rate aggregator)

Prime rate in Canada functions as the baseline for most variable-rate borrowing products, including variable mortgages, home equity lines of credit (HELOCs), and many credit cards that carry a floating interest rate component.

For Canadian mortgage holders and prospective buyers, the alignment of all Big Six banks at 4.45% creates a moment of relative clarity: there are no competing prime rate offers to compare across the major lenders. The differentiation, when it exists, comes from fees, mortgage features, and the specific product structures each lender uses.

The upshot

The nine rate cuts delivered between June 2024 and October 2025 delivered real relief to variable-rate borrowers who entered that period with prime-plus mortgages. But borrowers who missed that window now face a prime rate that has stabilized. Any further benefit will require a new easing cycle — and there is no confirmed timeline for that.

Related reading: Bank of Canada Key Rate Forecasts · Bank of Canada Overnight Rate Forecast

Additional sources

mcap.com

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Frequently asked questions

What factors influence the prime rate in Canada?

The Bank of Canada’s target overnight interest rate is the primary driver. When the central bank cuts or raises its policy rate, prime rates at commercial banks typically follow within days. Other factors include competitive pressures among lenders, broader economic conditions, and each bank’s own credit risk assessments.

How does prime rate affect my mortgage?

Variable-rate mortgages are directly tied to prime. If you have a prime-minus mortgage and prime falls, your payment or interest rate drops immediately. Fixed-rate mortgages are priced off bond markets, so they do not change when prime moves.

Which banks have the lowest prime rate today?

As of May 2026, all Big Six banks — TD, BMO, CIBC, RBC, Scotiabank, and National Bank — are aligned at 4.45%. Some credit unions and mono-line lenders may offer rates slightly below prime for qualifying borrowers.

When was the last prime rate change?

The most recent change affecting all Big Six banks was October 30, 2025, when they all dropped prime from their previous levels to 4.45%. The Bank of Canada has since held its policy rate at 2.25%, keeping prime stable.

What is the prime rate history chart?

Canadian prime rate peaked in the current cycle at 5.20% in January 2025 before declining through a series of Bank of Canada cuts. The rate reached 4.95% by March 2025, 4.70% by September 2025, and settled at 4.45% on October 30, 2025, where it has remained through April 2026.

Prime rate Canada 2024 summary

In 2024, the Bank of Canada launched an aggressive easing cycle, delivering multiple rate cuts that lowered the overnight rate from 5.00% to approximately 3.25% by year-end. Prime rate followed, declining from higher levels through the year.

Bank of Canada prime rate 2025 outlook

The 2025 outlook was defined by the nine cuts delivered between June 2024 and October 2025. By October 30, 2025, prime had settled at 4.45%, where it remained through the end of the year and into 2026.

For anyone carrying a variable-rate mortgage or considering one, the current environment demands active attention. With prime stable and the Bank of Canada signaling no immediate further cuts, the calculus for locking in a fixed rate has shifted. Fixed mortgage rates remain competitive and offer certainty that variable products no longer provide at the current rate level.

For Canadian homeowners with existing variable-rate products tied to prime, the question is whether to ride out the current plateau in hopes of future cuts, or to lock in a fixed rate before any potential increase. The choice hinges on individual risk tolerance and how long the current pause persists — a question that even the Bank of Canada’s own communications have not yet settled.