If you’ve said (or thought), “rates are so high right now,” you’re not alone.
I hear it every single day. But here’s the truth that might surprise you:
Today’s mortgage rates aren’t high. They’re actually… normal.
Let’s Put This Into Perspective
To understand where current rates stand, we need to look at what mortgage rates have looked like in Canada over time:
- 1996–2000: ~6.5%–8%
- 2001–2010: ~4.5%–6.5%
- 2011–2020: ~2.5%–4%
- 2021–2022: ~1.5%–2.5% (yes… really)
- 2023–2026: ~4.5%–6%
The long-term average is about 5%–6%
So where are mortgage rates today?
Right in line with history.
COVID Broke Our Perception of Mortgage Rates
The reason current rates feel elevated isn’t that they are high — it’s because our perception has changed.
Let’s call it what it is. During COVID-19, mortgage rates dropped to historic lows of 1–2%. These rates were:
- Emergency economic policy
- Designed to stimulate the economy
- A temporary response to a global crisis
And honestly? They spoiled us.
Buyers got used to cheap money, homeowners locked in unbelievably low payments, and now anything above 4% feels shocking!
But it shouldn’t.
This Is What “Normal” Looks Like in Ontario
In Ontario, affordability is already a challenge. So when interest rates jumped from 2% to around 5%, it felt massive. And it was — because it happened fast!
But historically speaking: 5% mortgage rates are completely standard.
This is where interest rates have sat for decades, and where they’re expected to stabilize long term.
Waiting for Mortgage Rates to Drop? Read This First
Many buyers are sitting on the sidelines, waiting for mortgage rates to “come back down.”
But here’s the hard truth:
There’s nothing for mortgage rates to “go back to.”
We already moved up from the exception.
Could rates dip slightly? Of course. Will we see 1–2% again anytime soon? Highly unlikely.
And in the meantime, waiting can come at a cost:
- Home prices may rise
- Competition can increase
- Opportunities may pass by
A Better Way to Think About Rates
Instead of asking: “Are rates high?”
Start asking: “Does this make sense for my life right now?”
Because the right time to buy, refinance, or make a move isn’t when rates are perfect — it’s based on when the strategy fits your financial goals.
Final Thoughts
If there’s one key takeaway, it’s this:
We’re not in a high-rate market. We’re in a normal one.
The ultra-low mortgage rates of the past few years were the exception, not the rule.
And once you understand that, everything changes!
Let’s Chat
If you’re trying to figure out what this means for your renewal, purchase, or next move — I’m here to help!
No pressure. Just real numbers and a plan that works for you.
