- A term sometimes used by mortgage brokers referring to rates offered to homebuyers by any of the major banks in Canada. Generally these rates are a percentage point (or more) higher than those offered by a mortgage broker.
- The minimum rate charged by the Bank of Canada for one-day loans to chartered banks, trust and loan companies and other members of the Canadian Payments Association. The bank rate affects the Prime Lending Rate that these financial institutions give to their most credit-worthy borrowers.
percentage, interest rate
Related Terms and Acronyms
- Conventional Mortgage — Definition, Important,
- A mortgage that is not insured or guaranteed by CMHC or GE Capital.
- Fixed Rate Mortgage (FRM) — Acronym, Very Important,
- A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
- Large Value Transfer System (LVTS) — Acronym,
- System being created by the Canadian Payments Association that will settle large value payments, possibly $50,000 and over, at the central bank on a same-day basis.
- Macroeconomics — Definition,
- A study of the economy as a whole, particularly the interaction of its various components.
- Monetary Policy — Definition,
- The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
- Mortgage Rate — Definition, Very Important,
➥ You can compare mortgage rates using this website by clicking 'Rates' above.
- The interest rate on a mortgage loan.
- Overnight Rate — Definition,
- The interest rate banks use to lend or borrow funds from each other.
- Posted Rate — Definition,
- The mortgage rates initially offered by a bank which a borrower is then expected to negotiate down.
- Prime Lending Rate (PLR) — Acronym, Very Important,
➥ Bank of Canada's prime (best) lending rate.
- The rate of interest charged on loans by chartered banks to their most creditworthy customers.
- Prime Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
- Usurious Rate — Definition,
- An interest rate that is unnecessarily high or well above legal rates. For example, sometimes intangible property taxes are applied to income from usurious rates.