Mortgage Rate History in Canada
Often the best way to determine where interest rates are going or could go is to look to the past to see traditional trends. Mortgage rates have not always been as low as they are today, so seeing the mortgage rate history in Canada may just put into perspective the opportunity that these rates offer to potential home owners today. Looking to the past can also give us a good comparison between fixed and floating terms to see historically what has done better over the long haul. Its one thing to take someone's opinion but it is another to see for yourself how much of a difference there can really be.
The chart below will show you the average 5 year fixed rate vs the prime lending rate over the past 25 years. This is of course no indication as to where things are going but as mentioned this mortgage rate history does add some historical perspective that we think you will find useful!
| Year | 5 Year Fixed Avg | Year | Prime Rate | |
| 1987 | 11.14 | 1987 | 9.52 | |
| 1988 | 11.60 | 1988 | 10.83 | |
| 1989 | 12.05 | 1989 | 13.33 | |
| 1990 | 13.24 | 1990 | 14.06 | |
| 1991 | 11.16 | 1991 | 9.94 | |
| 1992 | 9.52 | 1992 | 7.48 | |
| 1993 | 8.70 | 1993 | 5.94 | |
| 1994 | 9.34 | 1994 | 6.88 | |
| 1995 | 9.22 | 1995 | 8.65 | |
| 1996 | 7.94 | 1996 | 6.06 | |
| 1997 | 7.07 | 1997 | 4.96 | |
| 1998 | 6.90 | 1998 | 6.60 | |
| 1999 | 7.39 | 1999 | 6.44 | |
| 2000 | 8.20 | 2000 | 7.27 | |
| 2001 | 7.18 | 2001 | 5.81 | |
| 2002 | 6.70 | 2002 | 4.21 | |
| 2003 | 6.04 | 2003 | 4.69 | |
| 2004 | 5.80 | 2004 | 4.00 | |
| 2005 | 5.48 | 2005 | 4.42 | |
| 2006 | 5.98 | 2006 | 5.81 | |
| 2007 | 6.36 | 2007 | 6.10 | |
| 2008 | 6.41 | 2008 | 4.79 | |
| 2009 | 5.63 | 2009 | 2.40 | |
| 2010 | 5.61 | 2010 | 2.60 | |
| 2011 | 5.32 | 2011 | 3.00 | |
| 25 Year Average | 8.00 | 25 Year Average | 6.63 |
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