Canadian Mortgage Rates 1986-2009
This is a graph of the Average 5-Year Residential Canadian Mortgage Rates from 1986 to 2009. It looks like a fun hill to ski down! I know the image looks small in the blog so here is a table of the average interest rate:
1986 - 11.18 %
1987 - 11.37 %
1988 - 11.82 %
1989 - 12.64 %
1990 - 12.2 %
1991 - 10.33 %
1992 - 9.11 %
1993 - 9.02 %
1994 - 9.28 %
1995 - 8.58 %
1996 - 7.5 %
1997 - 6.98 %
1998 - 7.14 %
1999 - 7.79 %
2000 - 7.68 %
2001 - 6.93 %
2002 - 6.36 %
2003 - 5.91%
2004 - 5.63 %
2005 - 5.73 %
2006 - 6.16 %
2007 - 6.38 %
2008 - 6.06 %
2009 - 5.65 %
The 5-year residential mortgage rate has averaged 8.23% since 1986. In the press there is some talk about an “asset bubble” and worry that some new home buyers might have difficulty in a few years if they have to renew their mortgage at a higher rate. I guess that the saying goes “what goes up, must come down” so perhaps the opposite might be true for mortgage rates.
No one can predict the future or know what mortgage rates are going to be in 1, 2, or 5 years from now, but a smart exercise might be to ask yourself “what if rates went to 8%? How much would our mortgage cost?”.
ByTheOwner.com
