Let’s look at mortgage rates through history to understand why the time to finance a new home has never been better.
1935 – 5% Prime Rate
During the Great Depression, with an economy in shambles, lenders encouraged borrowing, and rates were as low as 5.5%. These prime rates remained consistent until the 1970s.
1974 – 11.5% Prime Rate, 12% 5-year Fixed
The 1973 oil crisis and ensuing stock market crash threw the economy into a recession. By 1974, interest rates had climbed higher than in the previous four decades, and inflation remained high until 1980.
1981 – 21.75% Prime Rate, 20.75% 5-year Fixed, 20.25% 1-year Fixed The recession of the early ‘80s is considered the most severe since World War II. Sharp oil price increases led to increased inflation worldwide, and mortgage rates hit their absolute peak in Canadian history.
1990 – 14.75% Prime Rate, 14.25% 1-year Fixed, 14.25% 5-year Fixed Once more, a recession started a new decade. The ‘90s saw another bump in rates, hitting 14.75%. Rates steadily declined, with small bumps along the way, until 2009, when interest rates hit lows similar to what we are experiencing now.
2020 – 2.95% Prime Rate, 2.25% 1-year Fixed, 2.10% 5-year Fixed
At Casera, our current rates are more competitive than ever before. If you’re interested in taking advantage of these incredible rates, call your neighbourhood branch today.