Prime Lending Rate
Definition
- The rate of interest charged to creditworthy bank client for loans offered by chartered banks.
Notes
Bank of Canada's prime (best) lending rate.
Synonyms
best interest rate, preferred rate, prime rate, best lending rate, prime, lowest interest rate
Acronyms
PLR
Alternate Spellings
Prime, Prime rate
Related Terms and Acronyms
- Bank — Definition,
- An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
- Bank of Canada (BC, BOC) — Company Est. 1935, Ottawa, Ontario, Canada, Important,
- Canada's central bank.
➥ Canada's central bank. - Bank Rate — Definition,
- Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
- 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.
- Interest (IN, int) — Acronym & Abbreviation,
- Money paid for the use of borrowed funds, usually expressed as an annual percentage.
➥ Bank account transaction code. - Interest Rate (IR) — Acronym, Very Important,
- The rate a lender charges an individual to borrow money.
- Lender — Definition,
- The bank or mortgage company offering the loan.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Mortgage Broker (MB) — Acronym, Important,
- One who finds clients perspective lenders at generally no cost. Mortgage Brokers have a special relationship with lenders and can offer their clients the best rates and service. CanEquity goes through great lengths to ensure you are serviced by the best Mortgage Brokers in Canada.
- Mortgage Lender (ML) — Acronym, Very Important,
- A lender that offers mortgages, often through a mortgage broker.
➥ Used internally by mortgage brokers and mortgage lenders. - Mortgage Rate — Definition, Very Important,
- The interest rate on a mortgage loan.
➥ You can compare mortgage rates using this website by clicking 'Rates' above. - 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 Rate — Definition,
- The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
- Private Lender — Definition,
- A lender not associated with a traditional lender.
- Sub-prime Borrower — Definition,
- A borrower with a less-than-perfect credit report due to late payments or a default on debt payments.
- Variable Rate — Definition,
- A floating percentage value that fluctuates based on certain conditions.
