Lending Rates

Our lending rates are updated frequently as we track the movement of our cost of borrowing in the capital markets. Rates on debentures are fixed for the entire life of the loan once the debenture is issued. Rates on construction loans float throughout the term of the loan until they are replaced by a debenture.

Today’s Lending Rates

Borrowers can contact their Relationship Manager who will provide a current indicative rate, as well as answer any financing questions.

Serial and Amortizer Debentures

Interest rates on our serial and amortizer debenture loans are all-in blended rates (sometimes referred to as Annual Percentage Rate or Internal Rate of Return). In this respect they differ from serial debentures that some borrowers may have sold in the past through banks or investment dealers; such serial debentures may have had lower interest rates attached to principal that paid out in the early years and higher rates attached to the longer maturity portions of the debenture.

Our rates are based on the same concept, but we take the process one step further and determine the single interest rate that equates to the rates across the whole term of the loan.

Sector Pricing

Infrastructure Ontario’s loan pricing recognizes the unique fundamental credit character of each eligible client sector and continues to provide equitable access to affordable financing rates. Pricing is based on the relative long term credit strengths of each eligible client sector, recognizing the varying degrees of government involvement and the security afforded to Infrastructure Ontario.

This pricing approach ensures that Infrastructure Ontario can support all eligible clients in an equitable and non-discriminatory manner.  All eligible clients within each sector share the same affordable rates, and same benefits of the loan program.

Indicative rates are based on Infrastructure Ontario's cost of funds plus a charge to cover program delivery costs.