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Statistics taken from CMHC shows the average Canadian annual 5 year mortgage rate.
Some of the highlights include:
- Annual average 5 year Canadian mortgage rate has ranged from a low of 5.46% in 1951 to a high of 18.15% in 1981.
- What impact does this have on a mortgage payment?
- A $100,000 mortgage at 5.46% would cost you $608.07 per month. A $100,000 mortgage at the 1981 peak of 18.15% would have cost you $1,477.49, a difference in monthly mortgage payments of $869.42.
- Your total principal and interest payments, assuming a 25 year amortization period based on a 5.46% mortgage rate would be $182,419.52 while your total principal and interest payment based on a 18.15% interest rate would be...$443,246.39, a difference of $260,826.87.
- Mortgage rates in 2003 at 6.04% have not been seen since 1954 at 6.01%.
- Notice that in most cases, interest rates reached something of a peak at the beginning of every decade. Could we see a spike in 2010?
Suggested Resources:
- Mortgage calculator
- Glossary of Canadian mortgage terms
- Canada Mortgage and Housing - CMHC