Canada Prime Rate

[tribe1689]

http://questrade.com/pricing/interest_rates.aspx

Questrade interest rates are based off the prime rate. I looked it up, and the prime corporate rate is 3.10%. Is that the correct rate that I looked up, or is the Prime Interest rate something else?

In other words, can a few people confirm what the Canadian Prime interest rate (the one referred in Questrade) is?

Thanks.

[gman]

http://questrade.com/pricing/interest_rates.aspx

Questrade interest rates are based off the prime rate. I looked it up, and the prime corporate rate is 3.10%. Is that the correct rate that I looked up, or is the Prime Interest rate something else?

In other words, can a few people confirm what the Canadian Prime interest rate (the one referred in Questrade) is?

Thanks.

There is a Canadian Bank rate set by Bank of Canada. Each back can set their own prime rate. Most of the time they are the same but they don't have to be. Technically, there is no Canadian prime rate.

[tribe1689]

So you're saying that what questrade is referring to does not exist? They are quoting their rate as being "CAD prime + 1%"

[gman]

So you're saying that what questrade is referring to does not exist? They are quoting their rate as being "CAD prime + 1%"

I bet they just want to use the same term as US.
Its CAD prime probably means Canadian bank rate.
I think they use a US terminology to describe a Canadian rate.

[CCCC3333]

http://www.bank-banque-canada.ca/en/rates/interest-look.html
When the say prime, they mean prime business rate.

[MiloshJ]

Thanks, that's exacly what I was asking about.

[pitz]

There is a Canadian Bank rate set by Bank of Canada. Each back can set their own prime rate. Most of the time they are the same but they don't have to be. Technically, there is no Canadian prime rate.

Many lending contracts define "Prime" as the average "prime" business lending rate across the 5 largest chartered banks in Canada.

So if one bank decides to jack its "prime" rate up very high, it is averaged out.