11/08/2025
Great News! Prime Rate Drops Again — More Savings for Homeowners & BuyersBig Six Banks Cut Prime Rate by 25 Basis Points
Canada’s largest banks have lowered their prime rates by 0.25%, matching the Bank of Canada’s latest rate cut — bringing more relief to variable-rate borrowers as the easing cycle continues.
👉 New Prime Rate: 4.45%
👉 TD Mortgage Prime: 4.60% (slightly higher due to a 2016 pricing adjustment)
💡 What This Means for Mortgage Borrowers
✔ Adjustable-Rate Mortgages:
You’ll save approximately $14 less per month for every $100,000 in mortgage balance (based on a 25-year amortization).
✔ Fixed-Payment Variable Mortgages (TD, BMO, RBC, CIBC):
Your payment stays the same — but more of it now goes toward paying down the principal.
✔ Adjustable-Rate Mortgages (Scotiabank, National Bank):
Expect your monthly payments to drop right away as the prime rate decreases.
✔ Fixed-Rate Borrowers:
While fixed rates don’t move directly with prime, they are influenced by Government of Canada bond yields, which have mostly been trending lower this year.
✔ HELOCs & Lines of Credit:
You’ll also see a reduction in interest costs immediately as lenders adjust their rates.
🏡 What This Means for YOU
With lower borrowing costs, it’s a great time to explore new opportunities — whether you’re planning to buy your first home, upgrade, or refinance your mortgage.
Let’s discuss how today’s lower rates can help you save more or get approved for more home value in this shifting market.