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Today's Best Mortgage Rates

5-Year Variable

5-Year Fixed

Canadian interest rates

Below are charts showing the Bank of Canada’s Prime Interest Rate in (Blue) used by Canadian Banks for their Variable Rate Mortgage Products. The (Yellow), (Orange) and (Green) represent 1, 3, and 5-year Conventional Mortgage interest rates, which are used by Canadian Banks for their Fixed Rate Mortgage Products.

It is important to note that these are the Banks Posted Rates and are not necessarily the rates you would receive but act as a starting point. These posted rates are used by larger banks to calculate the penalty if you “break” or pre-pay your mortgage.

The 5 Year Conventional Rate, (Green), is used as the “Benchmark Rate” or commonly referred to as the qualifying rate, which is the rate used to calculate the approved mortgage amount.

Here is the Bank of Canada’s Interest Rates since 1980. As you can see, there have been significant changes when looking back in the ’80s, and early ’90s, with the highest rate at 22.75%. In this era, rates where high, but the cost of homes was substantially lower. Within the last ten years, we have seen the reverse. Mortgage rates are at an all-time low while the price of homes has been on the constant rise. When comparing these two distinct times, the cost of borrowing is about the same. This is worth noting, as it’s not always about the rate!

Historical Interest Rates, 1980 - Present

Last 5 Years

Here is a deep dive into the last 5 years of interest rates. The variable rate dictated by the Bank of Canada’s eight prescheduled announcements is fixed on Canadian bond yields. Each is derived independently, and it’s worth noting that there has never been a time in Canadian history where the fixed rate has outperformed the variable option.

O.A.C. Terms and Conditions Apply. Rates are Subject to Change without notice

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