Bank of Canada Maintains the Policy Rate at 2.25%
Big Six Banks (Big 6)
The Big Six are Canada’s largest chartered banks: Royal Bank (RBC), Toronto-Dominion (TD), Scotiabank (BNS), Bank of Montreal (BMO), Commerce Bank (CIBC), and National Bank (BNC). Together, they hold most of the country’s mortgages, so their posted rates, prime rate moves, and lending rules shape the options most Canadian borrowers see.
Big Six Banks (Big 6) Quick Facts
- Canada’s six largest chartered banks
- RBC, TD, Scotiabank, BMO, CIBC, and National Bank
- Hold most of the country’s residential mortgages (up to 79%)
- Set posted rates and move prime together
- Designated systemically important by regulators
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What Are the Big Six Banks
The Big Six, sometimes described as the Big Five plus National Bank, are Canada’s dominant chartered banks: Royal Bank of Canada, TD, Bank of Nova Scotia (Scotiabank), Bank of Montreal, CIBC, and National Bank of Canada. They anchor the country’s banking system and are its largest mortgage lenders.
Regulators treat them as domestic systemically important banks, meaning their stability matters to the whole economy. The Bank of Canada tracks lending by chartered banks, showing the share of new and outstanding mortgages these institutions hold.
Why the Big Six Matter for Mortgages
Since the Big Six fund so many mortgages, their pricing sets the benchmark most borrowers compare against. When any of them moves its prime rate after a Bank of Canada decision, variable-rate payments across the market tend to follow, and their posted rates feed into the penalties and qualifying math on many mortgages.
The Big Six are A lenders with the sharpest rates for well-qualified borrowers, but they are not the only option. Monoline lenders, credit unions, and B lenders compete on price and flexibility, which is why comparing beyond the Big Six can save money, especially for self-employed or non-traditional borrowers, and those looking for the best insurable mortgage rates for their renewal.
How the Big Six Show Up in Your Mortgage
The Big Six touch a Canadian mortgage in several ways.
Prime rate. Each Big Six bank sets its own prime rate, and they usually move together after a change by the Bank of Canada, which affects monthly payments on variable and adjustable mortgages.
Posted rates. Their posted rates run higher than the rates you can negotiate, and they inflate interest-rate differential penalties on fixed mortgages.
Product range. The Big Six offer collateral charges, readvanceable mortgages, and bundled products that make it harder to switch lenders later.
For example, the Bank of Canada raises its policy rate by 25 basis points. Within days, the Big Six each raise the prime rate by 0.25%, so a borrower with an adjustable mortgage (ARM) sees a higher payment. In contrast, a borrower with a fixed-payment variable-rate mortgage (VRM) sees more of their monthly payment go toward interest.
Common Mistakes and Misunderstandings About the Big Six Banks
- Assuming the Big Six always offer the lowest rates
- Thinking their posted rates are the rates you pay
- Believing that only big banks can fund a mortgage
- Overlooking credit unions and monoline lenders
- Confusing the Big Six with the Bank of Canada
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Frequently Asked Questions (FAQ) About the Big Six Banks
Who are the Big Six banks in Canada?
RBC, TD, Scotiabank, BMO, CIBC, and National Bank are collectively known as the Big Six, the country’s largest chartered banks and biggest mortgage lenders.
What is the difference between the Big Six and the Big Five?
The Big Five are RBC, TD, Scotiabank, BMO, and CIBC. Adding the National Bank of Canada makes it the Big Six.
Do the Big Six banks offer the best mortgage rates?
Not always. They are competitive for well-qualified borrowers, but monoline lenders and credit unions often match or beat them, so it pays to compare.
Why do the Big Six raise rates at the same time?
Their prime rates track the Bank of Canada policy rate. When it changes, banks usually adjust the prime rate by the same amount within days.
Are the Big Six banks safe in Canada?
Yes, the Big Six are safe. Regulators designate them systemically important and hold them to strict capital and oversight rules, and eligible deposits are protected within CDIC limits.