Prime Rate
Prime rate:The rate used as a base to calculate the interest applied to a Canada Student Loan. This prime rate is calculated using the interest rates declared by the five largest Canadian financial institutions as their prime rate. The Canada Student Loans Program calculates its prime rate by eliminating both the highest and the lowest of those five rates and taking the average of the remaining three.
The five institutions include the Bank of Montreal, the Canadian Imperial Bank of Commerce, the Bank of Nova Scotia, the Royal Bank of Canada and TD Canada Trust.