The prime rate in Canada as of September 18, 2025, is 4.7%. This rate is the annual interest rate that major Canadian banks use to set interest rates for variable loans and lines of credit, including variable-rate mortgages. It closely follows the Bank of Canada's key overnight rate, which is currently 2.5%. The prime rate was recently lowered from 4.95% to 4.7% following the Bank of Canada's rate cut in September 2025.