Scotiabank Prime Rate
The prime rate is the lending rate Canada’s banks and financial institutions use to set interest rates for variable loans and lines of credit, including mortgages. Scotiabank’s prime rate today, December 11, 2024, is currently 5.45%.
About Scotiabank’s prime rate
The current Scotiabank prime rate is 5.45%. This is the same prime rate that you'll see posted by most major financial institutions in Canada.
As with other banks, Scotiabank usually only changes its prime rate in response to the Bank of Canada's (BoC) interest rate policy. When the BoC raises or lowers the key rate (known as the target for the overnight rate) Scotiabank will usually adjust its prime rate by the same amount. For example, if the BoC were to raise the overnight rate by 25 basis points (bps), Scotiabank would usually raise its prime rate by 25 basis points as well.
There have been some exceptions to this rule, where Scotiabank hasn't fully passed on BoC rate cuts. For example, there have been times where the BoC has cut interest rates by 25 basis points, but Scotiabank only lowered its prime rate by 15 basis points. At times like these, most of the major banks tend to make the same call. While it’s unusual for any bank to change its prime rate independent of BoC interest rate announcements, changes to the prime rate can happen at any time.
How the Scotiabank prime rate affects variable mortgage rates
When you get a variable-rate mortgage from Scotiabank, the interest rate will be expressed as the Scotiabank prime rate, plus or minus a certain percentage point. For example, if the Scotiabank prime rate is 3.00%, and your mortgage rate is prime minus 0.50%, your mortgage rate would be 2.50%.
- 3.00% (prime rate) - 0.50% (discount to prime rate) = 2.50% (mortgage rate).
If Scotiabank were to change its prime rate, your mortgage rate would change by the same amount. For example, if the Scotiabank prime rate were raised to 3.25%, your mortgage rate would rise with it to 2.75%.
- 3.25% (new prime rate) - 0.50% (discount to prime rate) = 2.75% (new mortgage rate).
How the Scotiabank prime rate affects fixed mortgage rates
Unlike variable-rate mortgages, fixed-rate mortgages are not immediately affected by changes in the Scotiabank prime rate. When you get a fixed-rate mortgage, your mortgage rate is guaranteed not to change for the entire term. This mitigates your risk in the event rates go up, because your rate won’t change. However, if rates go down, you won’t enjoy the added benefit. Fixed rates are best if you think mortgage rates will go up, or if you want the stability of knowing exactly what rate you’ll be paying regardless of what happens in the market.
Scotiabank Mortgage Rates
Featured
Scotiabank
4.69%5-yr Fixed
Featured
Scotiabank
4.75%5-yr Variable
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Scotiabank
4.64%3-yr Fixed
Bank Mortgage Rates
Rates updated:
- No Results
| Provider | 5 Year fixed | 5 Year variable | 3 Year fixed | 10 Year fixed |
|---|---|---|---|---|
Best market rate | 4.14% | 4.50% Prime -0.95% | 4.09% | 5.24% |
4.59% | 5.15% Prime -0.30% | 4.89% | 5.90% | |
4.74% | 5.10% Prime -0.35% | 4.49% | 5.90% | |
4.69% | 4.75% Prime -0.70% | 4.64% | 5.90% | |
4.59% | 5.15% Prime -0.30% | 4.89% | 7.14% | |
4.89% | 4.89% Prime -0.56% | 4.99% | 5.89% |