The Bank Prime Rate is the rate that Canadian banks charge their absolute best customers for loans.  Changes in the Bank of Canada prime rate influence changes in other interest rates, including variable interest rate mortgages.  The prime rate fluctuates based on economic conditions.  Some mortgage companies offer interest rates starting at less than bank prime rate as an incentive to borrow from them!   These are known as “SUB PRIME” Mortgages and we know what happened in the US when too many sub-prime mortgages were given out in the mid 2000’s   Read more about Sub-Prime Mortgages
For example, see the Royal Bank Prime Rates |  Bank of Canada Prime rates found here | should you lock in your mortgage for the long or short term? | How does the Bank of Canada Set the Prime Rate and Interest Rates?

| Mortgage Terms Explained |

The Graph(s) below show you interest rate trends in the past

• This is a graphical representation of Historical Canadian mortgage interest rates from 1979 to date.
• From 1979 to 1994 the rate shown is the average 5 year mortgage rate posted at the major Canadian Banks, and then rates shown are the 3 year mortgage interest rate (usually I used Royal Bank and CIBC spot rates).
• Not all interest rate fluctuations are shown since 1996, just the ones that I was interested in at the time.
• See the average single family residential property prices going back to 1985

Send Lindsay an E-mail or you can call me now at 905-828-3434

This is an excellent link to view and compare Today’s Low Canada and Ontario Current Mortgage Interest rates from major lenders for discounted, variable, fixed and prime rates in Canada and a mortgage calculator

Click graph below to open a full size detailed image in new window

Should I go short or long term on my mortgage – comparison of rates over time

You can compare Short or long term mortgage rates here.

Another very interesting relationship is how the 1 year and 5 year mortgage interest rates compare over time.  People often ask me if they should choose the short term rates or lock in for the long term rates with their mortgage.  The answer is not simple and often depends upon your personal situation and your risk tolerance, read more about locking in your mortgage for the long or short term.  The graph below may give you some insight into what you may wish to do by comparing the difference between the short and long term rates over the past decade or so and how the difference fluctuates.

Click graph below to open a full size detailed image in new window

Mortgage Interest rates are still very low compared to previous decades!

Mortgage Calculator Canada

OR you can find A mortgage that’s right for you from the lowest to highest and Current mortgage rates. Fixed rate and variable Canadian mortgages, Mortgage Rate Directory, Low Mortgage Rates, Today’s Mortgage Rates, Discounted Mortgage Rates, Mortgage Rate info, Mortgage Tips & Advice, Ontario Mortgage Rates and more at this best rate page.

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Why Subscribe?  You will receive valuable Real Estate information on a monthly basis – such as: where to find the ‘best’ mortgage interest rates, Power of Sale properties and graphs of current house price trends.  Plus, you will acquire ideas, suggestions and excellent real estate advice when you sell or buy your next home. Read Past Newsletters before you decide  Privacy-Policy