Canadian mortgage rates are surging higher but are mortgage rates now high? Bank of Canada (BoC) data shows interest costs for new mortgage lending climbed sharply in May. Rates are rising from record lows, stimulus-levels, and largely just normalizing. New mortgage borrowers were still paying less interest than they would have in 2019.
Uninsured Mortgages Were Going For Rates Similar To Feb 2020
Let’s start with uninsured mortgage interest, which is the majority of new debt. New uninsured borrowers paid an average of 2.97% in May, up 0.21 points in the month, and 1.01 points from last year. It’s a sharp climb for a year, but it’s also coming off incentivized stimulus rates. It’s only the highest rate since February 2020, failing to even compare to a period prior to the recession.
Canadian Mortgage Rates Were Rising But Still At Recession Levels
The average interest rate…