Guides to interest rates in Canada and the United States: how a rate is calculated, how APR differs, what central bank decisions change, and where rates stand.
29 articles
The Bank of Canada cut 275 basis points since 2024, but only floating-rate debt got it. Here is what the cuts did to each kind of Canadian loan.
The Fed has held rates at 3.50%-3.75% since December 2025 and its own June 2026 median now points slightly up. Here is what the forecasts are worth.
Canada's average secured line of credit is 3.96% and unsecured 8.40% as of May 2026. How the rate is set, and why secured lines sit below prime.
No. In Canada, APR adds mandatory lender fees to the interest rate, but eight charges are excluded by law, including CMHC premiums. Here is what counts.
Know the payment but not the rate? Solve for it with a spreadsheet RATE formula, trial and error, or a lookup table, plus the Canadian compounding rule.
An interest rate is the yearly price of borrowing money. See what Canadian banks charge by product, why a 5% mortgage costs more than 5%, and the legal ceiling.
The Fed's own projections show rates easing only slowly: the June 2026 median sees end-2026 near today's level, then a gradual drift toward 3.1%.
No. As of 2026 the Bank of Canada is holding at 2.25% and no major forecaster expects a cut. Here's why rates stopped falling and what it means for you.
A rate hike raises variable mortgage payments right away and fixed payments at renewal. See the mechanism, worked numbers, and what it means for you in Canada.
The interest rate is your borrowing cost, APR adds the lender fees, and APY adds compounding on savings. See how the three differ, with a worked example.
The Bank of Canada rate peaked near 21% in 1981 and fell to 0.25% in 2009 and 2020. See the full history of Canadian interest rates and today's 2.25% rate.
The highest TFSA interest rates in Canada usually come from online banks and credit unions, not the Big Six. See June 2026 rates and what they really earn.
No single bank always has the lowest personal loan rate in Canada. Your rate depends on your credit, and credit unions often beat the big banks.
The Bank of Canada policy rate is 2.25% (June 2026) and prime is 4.45%. See what those rates mean and what Canadians actually pay on mortgages and loans.
Divide the annual rate by 12 to get your monthly rate, then multiply by the balance. See worked examples, the APR trap, and when to divide by 365.
Interest rates usually fall in a recession as the Bank of Canada cuts its policy rate to spur borrowing. See why, the exceptions, and what it means for you.
No. A federal Parent PLUS rate is fixed for life and tied to the parent. Here is what you actually can do, the current rate, and what refinancing costs.
The next Fed interest rate decision is June 17, 2026 at 2:00 PM ET. Full 2026 FOMC calendar plus what a 25 bp move means for your mortgage and HELOC.
The nominal interest rate is the stated, unadjusted rate on a loan or savings account. Here is how it differs from real, APR, and APY, with current US examples.
The next Bank of Canada interest rate announcement is Wednesday, June 10, 2026 at 9:45 AM ET. Here is the full 2026 schedule and who is actually affected.
The current US prime rate is 6.75% (effective December 11, 2025). Here is what that number means, why it is not the rate you actually pay, and how it changes.
Yes, local lenders can lower interest rates if you ask the right way. Here is how to negotiate mortgage, auto, and credit-card rates with worked examples.
30-year fixed sits at 6.36% (May 14, 2026), trending gently down from the 7.79% 2023 peak. Why rates don't follow Fed cuts, and what a 1% drop saves you.
One mortgage point costs 1% of the loan and cuts the rate ~0.25%. Worked examples, breakeven by tenure, and whether points or principal wins.
A good US auto loan rate in 2026 sits near 4.7% for super-prime borrowers buying new and 7.7% on used. Here is what each credit tier should expect today.
Calculate interest rate using simple interest, compound interest, or amortization formulas. Worked examples for loans, savings, and Canadian mortgages.
Lower rates make borrowing cheaper, which lifts spending and demand. When demand outruns supply, prices rise. Here is how the rate-inflation link works.
No. APR includes interest plus fees expressed annually; interest rate is just the borrowing cost. Here is how they differ and why APR is a better cost compass.
Interest rates fall when the Federal Reserve cuts the federal funds rate, usually after inflation cools and jobs slow. Here are the signals to watch.