Scotiabank Prime Rate
About Scotiabank's Prime Rate
Today’s Scotiabank Prime Rate is 5.95%, which is current as of November 13, 2024. Also known as the Scotiabank Prime Lending Rate, this rate is used for Scotiabank’s loans and mortgages that have a variable rate. It’s called a variable rate because it can change during your term, unlike a fixed rate that does not change during your term. Borrowers with a variable-rate mortgage, loan, or line of credit will be impacted when Scotiabank changes their prime rate, which is usually based on changes in the Bank of Canada’s policy interest rate.
Scotiabank’s Latest Prime Rate Change
On October 23, 2024, Scotiabank decreased their prime rate by 0.5% from 6.45% to today’s prime rate of 5.95%.
Scotiabank Prime Rate History
How Does Scotiabank’s Prime Rate Work?
Each bank in Canada sets its own prime rate that they use for its lending products. Scotiabank’s prime rate is used for Scotiabank loans that have an interest rate based on prime, which includes some Scotiabank mortgage rates. Usually, prime rates at Canada’s Big 6 banks, as well as at other Canadian financial institutions, would be the same. If RBC’s prime rate is currently 5.95%, then you can expect Scotiabank’s prime rate to be 5.95% too. That’s because prime rates usually follow rate changes as announced by the Bank of Canada in their policy interest rate. When it gets more expensive for banks to borrow money, they will pass along that increased cost to their own borrowers through a higher prime rate.
Variable-rate loans that would be affected by changes in Scotiabank’s prime rate include variable-rate mortgages, home equity lines of credit (HELOCs), as well as some personal loans and car loans. For these types of loans, it’s common to be quoted a rate that is tied to the prime rate, plus or minus an “adjustment factor.” For example, you might have a HELOC rate that is equal to Prime + 0.5%. This means that your HELOC’s interest rate will be the current prime rate plus an adjustment factor of 0.5%. If the current prime rate is Current Prime Rate, then your HELOC’s interest rate would be 6.45%.
Some borrowers might be able to get a discount on the prime lending rate, which is more likely for some secured loans and student loans for some professional programs. More risky borrowers, as well as unsecured loans, are more likely to have an interest rate above prime. Factors that can affect your interest rate include your credit score, income, debt levels, assets, and collateral.
How Does Scotiabank Announce Prime Rate Changes?
Scotiabank usually announces any prime rate changes as a press release, often on the same day as any Bank of Canada rate announcements that result in a rate change. Bank of Canada rate decisions are made on a fixed schedule eight times per year. This means that Scotiabank’s prime rate may change eight times per year.
Usually, the effective date of the change is the day after the announcement. For example, Scotiabank last announced a change in its prime rate on October 23, 2024. The new prime rate will be effective on Scotiabank loans starting October 24, 2024.
How Did The Latest Scotiabank Prime Rate Change Affect Your Mortgage?
Scotiabank variable-rate borrowers will be immediately impacted by any change in the Scotiabank prime rate. The latest 0.5% decrease in Scotiabank’s prime rate meant that interest rates will be going down for borrowers with a variable mortgage rate. Just how much would Scotiabank’s latest prime rate change save you?
On a $500,000 mortgage, a 0.5% decrease in the prime rate would save you approximately $208.33 per month.
Enter your mortgage balance below to see how Scotiabank’s latest prime rate change would affect your mortgage.
Impact of Scotiabank’s Prime Rate Change of -0.5%
| Mortgage Balance | Effect On Monthly Interest |
|---|---|
| $100,000 | $41.67 less per month |
| $200,000 | $83.33 less per month |
| $300,000 | $125.00 less per month |
| $400,000 | $166.67 less per month |
| $500,000 | $208.33 less per month |
| $600,000 | $250.00 less per month |
| $700,000 | $291.67 less per month |
| $800,000 | $333.33 less per month |
| $900,000 | $375.00 less per month |
| $1,000,000 | $416.67 less per month |
How Does Scotiabank’s Prime Rate Change Affect Me?
Scotiabank's prime rate doesn't affect all Scotiabank interest rates. Interest rates for savings accounts and GIC rates aren't directly tied to prime. Credit cards typically don't have an interest rate directly tied to prime either, unless it has a variable APR or some low-interest credit cards. If you do have a variable rate that is based on prime, any changes in Scotiabank’s prime rate may affect your loan’s required payment amount or amortization.
If you have a variable-rate mortgage, such as the Scotia Ultimate Variable Rate mortgage, then your interest rate will change. However, you're protected by a Cap Rate, which is the maximum amount that your rate can be during your term. This protects you against significant increases in the prime rate. As a variable-rate mortgage, your payments are fixed. This means that your monthly, semi-monthly, bi-weekly, or weekly mortgage payments will not change during your term.
Since your mortgage payments are fixed, should Scotiabank’s prime rate increase, you’ll be paying less money toward your loan principal. That’s because the mortgage interest owed increases even as your payment stays the same. There’s less money left over to go towards your principal, meaning that it will take slightly longer to pay off your mortgage. This increases your mortgage’s amortization above what it was initially. To get back on track to your original amortization, you may be required to make larger mortgage payments in your next term when it’s time to renew your mortgage for another term.
If rates increase significantly, you may hit your mortgage’s trigger rate, which occurs when your fixed payment no longer covers even just the interest owed. Having a variable mortgage with a capped rate, which the Scotia Ultimate Variable Rate mortgage has, can help offset this risk.
Scotiabank offers a mortgage with a variable rate that has both an interest rate and a payment amount that changes based on prime. This is called the Scotia Flex Value mortgage . If the prime rate increases, you’ll have to make a larger mortgage payment. This ensures that your mortgage amortization doesn’t increase, allowing you to stay on track on paying off your mortgage. Also known as an adjustable-rate mortgage, your loan principal payments will stay the same even if the prime rate has increased.
Scotiabank Fixed Mortgage Rates
| Term | Scotiabank Rate | Lowest Rates of Big 6 Banks |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Scotiabank Variable Mortgage Rates
| Term | Scotiabank Rate | Lowest Rates of Big 6 Banks |
|---|
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Scotiabank Loans & Lines of Credit
Scotiabank Auto Loans
Scotiabank car loans can have either a fixed or variable interest rate, except for borrowers in Quebec. Scotiabank only offers auto loans with a fixed rate in Quebec. With a Scotiabank car loan, you can borrow up to $200,000 to purchase a new car or a used car that is up to 7 years old, from over 4,000 car dealerships. The maximum term length is eight years.
For new grads, the Scotiabank Grad Auto loan gives new graduates 100% financing with no down payment, along with no loan payments for up to 90 days until they start a full-time job. This loan has slightly more restrictions than Scotiabank's regular car loan. With the Grad Auto loan, the maximum term length is five years. Used cars that are purchased with this loan cannot be older than three years old. This loan can have either a fixed or variable rate, except for Quebec borrowers where only a fixed rate is available.
Newcomers to Canada that have lived in Canada for three years or less may qualify for the StartRight auto finance program, providing up to $75,000 for those with no Canadian credit history. This program requires a minimum down payment of 10% for Canadian Permanent Residents or 25% for foreign workers.
Scotiabank Personal Loans
Scotiabank's personal loan is called the Scotia Plan Loan. It has a maximum term length of 5 years and can be either a fixed or variable rate.
Scotiabank Lines of Credit
The ScotiaLine Personal Line of Credit lets you borrow from $5,000 up to $75,000, with a variable interest rate based on Scotiabank's prime rate. You may be eligible to make interest-only minimum payments. As a line of credit, you can borrow and repay whenever you need to.
If you have a Scotia Total Equity Plan (STEP) mortgage, you can combine it with a line of credit to make it a home equity line of credit (HELOC). This lets you borrow up to 65% of the value of your home, up to $1,500,000, and a minimum credit limit of $10,000. You may also be able to access your HELOC funds using a VISA access card, making it easy to borrow from.
Scotiabank RSP Catch-Up Line of Credit
Some banks offer loans that allow you to borrow money to contribute towards your RRSP if you have unused contribution room. Scotia RSP Catch-Up Line of Credit lets you borrow from $1,000 up to $75,000, at a low interest rate starting from Prime + 1%. This can reduce your income tax while giving you money to invest.
Scotiabank Student Line of Credit
Scotiabank's personal lines of credit for students are only available with a variable rate based on prime. The maximum amount that you can borrow depends on your program. Full-time undergraduate/diploma students can borrow up to $40,000. Those enrolled in graduate programs may borrow up to $100,000. The amount also varies based on the number of years of study, with a set limit per year. You only need to make interest payments during your studies, and there's a 12-month grace period where you don't need to make any principal payments after graduation.
For student professionals, the SPSP Line of Credit gives a credit limit of up to $375,000 for professional degree students, such as those in medicine, dentistry, and law. It also offers a longer grace period of 24 months.
Scotiabank GIC Rates
The Scotiabank GIC rates below are current as of November 13, 2024.
| Provider | 3-Month | 6-Month | 9-Month | 1-Year | 1.5-Year | 2-Year | 3-Year | 4-Year | 5-Year |
|---|---|---|---|---|---|---|---|---|---|
2.75% 3-Month | 3.10% 6-Month | 3.25% 9 Month | 3.40% 1-Year | 3.30% 1.5-Year | 3.25% 2-Year | 3.15% 3-Year | 3.10% 4-Year | 3.05% 5-Year |
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