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Mortgage Rate History Canada

Below, you will find historical posted and discounted mortgage rate information, dating from 2006 to present day. These graphs illustrate how both fixed and mortgage rates have trended over time, as well Canada’s prime mortgage rate.

Why are historical mortgage rates important?

There’s no bigger factor on the cost of Canadian homeownership like the cost of borrowing; whether mortgage rates are high or low influences everything from home buyers’ purchasing power, to Canadian real estate prices and, the overall strength of the Canadian economy.

Seeing how mortgage rates have fluctuated over the last two decades in response to factors such as the changing Prime rate, periods of high or low inflation, and the impact of the COVID-19 pandemic, provides borrowers with valuable insight, and helps them make educated decisions about their rates today.

What is the difference between posted and discounted mortgage rates?

Posted mortgage rates are those that are advertised by mortgage lenders to the public. However, these rates tend to be higher than what borrowers may actually be able to qualify for. Often, if a borrower has an ideal credit score and solid borrowing history, they can qualify for lower, or “discounted” mortgage rates, which are several percentage points lower than the posted rate. Borrowers can negotiate directly with their lender to receive a discounted mortgage rate, or work with a mortgage broker, who has access to the most competitive rates offered by lenders. That’s why it always pays to be an informed borrower and to be aware of what options may be available to you in the Canadian mortgage marketplace.

1-year discounted fixed mortgage rates

From 2006 - Today

3-year discounted fixed mortgage rates

From 2006 - Today

5-year discounted fixed mortgage rates

From 2006 - Today

10-year discounted fixed mortgage rates

From 2006 - Today

5-year discounted variable mortgage rates

From 2006 - Today

Prime mortgage rate

From 1941 - Today

What is the prime rate in Canada?

Canada’s prime rate – also referred to as the prime lending rate – is the annual interest rate used by Canada’s financial institutions and major lenders when setting the pricing for their variable borrowing products. These include variable-rate mortgages, and lines of credit, including HELOCs.

The Prime rate is in turn set by the Bank of Canada via the central bank’s Overnight Lending Rate. This means that when the BoC increases or cuts this benchmark rate, the Prime rate will move up or down in tandem; lenders will usually adjust their prime rates within a few days of the BoC’s announcement.

Discount to prime rate

From 2006 - Today

What is the "discount to Prime rate"?

Variable mortgage rate pricing is directly based on the prime rate, with a floor rate that’s either plus or minus a percentage off of the prime rate. This means, when the prime rate in Canada increases or decreases, your variable mortgage rate will go up or down by the same margin.

Let’s look at an example: If the prime rate is 6.95%, and you get a variable-rate mortgage at prime minus 0.8%, your effective variable mortgage rate will be 6.15%.

Posted 1-year fixed mortgage rates

From 1980 - Today

Posted 3-year fixed mortgage rates

From 2000 - Today

Posted 5-year fixed mortgage rates

From 1973 - Today

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