Glossary · Financing
What is Prime rate?
The prime rate is the benchmark interest rate lenders use to set rates on variable products like HELOCs and variable mortgages.
Definition
Lenders set their prime rate based on the central bank's policy rate. Variable mortgages and lines of credit are usually priced as prime plus or minus a margin, so they move when prime changes.
When prime rises, variable borrowing costs more; when it falls, you pay less. Watching prime helps you anticipate changes to your payments.
When prime rate matters
- Anticipating changes to a variable mortgage
- Understanding HELOC interest costs
- Timing fixed-vs-variable decisions
With Homeprint
How Homeprint helps with prime rate
Homeprint helps you keep your mortgage and credit details in view so rate changes never catch you off guard.
- Keep every related document in one secure place
- Track your home's value and finances over time
- Stay connected with trusted neighbourhood experts
Prime rate — FAQ
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