Canada Bank Interest Rates: What You Need to Know

What are interest rates?
When you borrow money from a bank or other financial institution, you're not just paying back the amount you borrowed. You're also paying extra money in the form of interest. The interest rate is the annual percentage charge that you're paying on the money you've borrowed.
Why do interest rates matter?
Interest rates matter because they affect the cost of borrowing money. The higher the interest rate, the more you'll pay in interest over the life of your loan. And the lower the interest rate, the less you'll pay.
For example, let's say you borrow $100,000 at an interest rate of 5%. Over the life of a 30-year mortgage, you'll pay $152,244 in interest. But if you were able to get the same loan at an interest rate of 4%, you'd only pay $129,033 in interest. That's a difference of $23,211!
What are the current interest rates in Canada?
The Bank of Canada's target for the overnight rate is currently 4.25%. This is the rate that banks charge each other for overnight loans. Prime rate, which is the rate that banks charge their best customers, is currently 6.70%.
What does this mean for you?
If you're planning to borrow money in the near future, you should shop around for the best interest rates. You may also want to consider locking in an interest rate before they go up again.
Here are some tips for finding the best interest rates:

Compare rates from multiple lenders.
Check with your local credit union.
Look for lenders who offer special promotions or discounts.
Get pre-approved for a loan before you start shopping for a home.
Lock in an interest rate if you're worried about rates going up.

By following these tips, you can find the best interest rates on your loan and save yourself money in the long run.