04/29/2026
I get asked this question all the time!
Why do people post a rate that makes no sense to what I’m offered???
Seeing two different interest rates right now? Here’s why 👇
There are two key rates to understand:
• 2.25% — The Bank of Canada Overnight Rate (the rate banks use to lend to each other)
• 4.45% — The Prime Rate (the rate that impacts most variable mortgages and lines of credit)
So why the difference?
Banks add a margin on top of the Bank of Canada rate to set their Prime Rate:
2.25% + ~2.20% = 4.45%
What this means for you:
When you hear “rates are holding,” it means the Bank of Canada hasn’t changed its rate — so variable-rate mortgages tied to prime are staying steady (around 4.45%, depending on your lender).
Questions about how this impacts you or your buying power? Send me a message and let me connect you to a lender that can really help!
