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In 1982, Pac-Man Was All the Rage! And Mortgage Rates Were 19%

April 25, 2013 - Updated: April 25, 2013

Today, there are millions of video games, and rates have been hovering around historic lows for longer than almost anyone thought they would or could. Wouldn’t it be nice to know where rates are heading next? The only thing that’s certain is that interest rates go up and they go down. No one can predict accurately what will happen next when it comes to interest rates. What we can do is look at how rates have historically behaved. The comparison chart shows the history of 5-year fixed mortgage rates against the prime lending rate, and compares this with the yield on the 5-year Government of Canada bond, which is the benchmark indicator for fixed mortgage rates. Banks use Government of Canada bonds to raise money for fixed-rate mortgages. That’s why you watch the bond market for clues on where fixed mortgage rates are going. Variable rates are different, they move in conjunction with the prime lending rate. These historic rates have created a golden moment of opportunity for Canadian home buyers.

Historical Mortgage Rates

Historical comparison of 5-year mortgage rates, 5-year bond yields and the prime rate


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