What rate applies to pre-judgment interest in Ontario?
Under the Courts of Justice Act, the pre-judgment interest rate is set by regulation and updated quarterly. It is generally tied to the Bank of Canada rate. For most contract debts, the contractual rate applies instead if specified in the agreement.
Is pre-judgment interest automatically awarded?
In Ontario small claims court, the deputy judge has discretion to award pre-judgment interest. Claimants must request it in their claim. Courts generally award it for straightforward debt cases.
Does the interest rate change if there is a contract?
Yes. If your contract specifies an interest rate (e.g., 18% per annum on overdue invoices), the court will typically apply the contractual rate rather than the statutory rate.