Glossary
CORRA
CORRA, the Canadian Overnight Repo Rate Average, is a benchmark interest rate published by the Bank of Canada from overnight secured repo transactions..
CORRA — the Canadian Overnight Repo Rate Average — is a benchmark interest rate published by the Bank of Canada. It measures the average cost of overnight secured borrowing between financial institutions in the Canadian repo market, and it is calculated from actual transactions rather than from a survey of quoted rates.
Because it reflects real trades, CORRA is treated as a reliable reference point for very short-term Canadian interest rates. The Bank of Canada publishes the rate each business day on its website, along with the methodology used to calculate it.
How CORRA differs from the policy rate and prime rate
The policy interest rate, often described as the overnight rate target, is set by the Bank of Canada at scheduled announcement dates. CORRA is not set — it is observed in the market and typically trades near that target, though it can sit slightly above or below it. The prime rate used to price variable-rate mortgages is a separate, lender-set figure that generally moves when the policy rate changes.
Why CORRA matters to Canadian borrowers
Canada has been shifting away from the Canadian Dollar Offered Rate (CDOR), a survey-based benchmark that was used to price various loans and derivatives and has since been discontinued. CORRA became the preferred replacement because it is transaction-based. If you hold a variable-rate mortgage or a loan whose rate is tied to a benchmark, your lender's pricing may reference CORRA rather than CDOR.
- CORRA is a secured, overnight rate; CDOR was an unsecured, term-based rate.
- CORRA is published daily by the Bank of Canada from repo transactions.
- Mortgages and lines of credit tied to a named benchmark can be affected by this transition.
Most consumer variable-rate mortgages in Canada are still priced off the lender's prime rate, so a movement in CORRA does not automatically change your payment. What matters is whether your contract actually names a benchmark.
What to check in your own documents
Read the interest clause of your mortgage commitment carefully. If it refers to prime, note which lender's prime rate applies. If it refers to a benchmark rate, confirm which benchmark and how it is defined. For the benchmark itself, the benchmark rate page and the Bank of Canada's published CORRA data are the authoritative references.
Frequently asked questions
What is CORRA in simple terms?
CORRA is the Canadian Overnight Repo Rate Average, a benchmark published by the Bank of Canada. It reflects the average interest rate on overnight secured loans between financial institutions, calculated from actual repo transactions. It is used as a reference for short-term Canadian interest rates and, in some contracts, as a benchmark for loan pricing.
Does CORRA affect my variable-rate mortgage payment?
Usually not directly. Most Canadian variable-rate mortgages are priced off the lender's prime rate, which moves with the Bank of Canada policy rate. CORRA is a separate benchmark. Check your mortgage commitment or disclosure statement to see which rate your contract actually references before assuming a CORRA change alters your payment.
How is CORRA different from the Bank of Canada policy rate?
The policy rate is a target set by the Bank of Canada at fixed announcement dates. CORRA is not set — it is calculated daily from observed overnight repo transactions and tends to trade close to the target. One is a decision, the other is a market measurement, which is why the two figures can differ slightly.
Sources
Related terms
- Benchmark Rate — A published reference rate — such as the Bank of Canada's policy rate or prime rate — that other interest rates are quoted against.
- Overnight Rate — The rate at which large financial institutions lend each other funds for one day, guided in Canada by the Bank of Canada's target for the overnight rate.
- Prime Rate — The prime rate is the interest rate Canadian banks charge their most creditworthy borrowers, and it is the benchmark used to price variable-rate mortgages and lines of credit.
- Variable-Rate Mortgage — A mortgage whose interest rate rises and falls with the lender's prime rate during the term instead of staying fixed.
- Policy Interest Rate — The Bank of Canada's target for the overnight rate, which anchors short-term borrowing costs and influences Canadian mortgage pricing.