What has been normal for Canadian Interest rates?
Below is a graph showing the numbers from the 1960’s until recently.
From the looks of it…the rates will continue to rise for a while. One step at a time.
So many people are not used to what interest rates have been, historically speaking. Our parents bought homes when rates were 3 and 4 times the rates now. yes cost of living was different and by most accounts more affordable. Different neighbourhoods offer different pricing and styles. Shop more widely, you’ll be surprised at the treasures you’ll find.
The sky is not falling but the economic environment has been full of cheap money for quite a while. When the economy is doing well, rates rise and that’s what’s happening now. Count on rate increases by default. I am not convinced we’re doing as well as they say…but they are the experts.
Monetary Policy Report from the Bank of Canada
And to put some perspective on historical rates: This graph below is from the Globe and Mail.
It will help you grab some perspective on what’s happening right now. Again, pay with cash as much as possible for purchases,
seriously focus on reducing your debt and for some people, put that credit card in a block of ice in your freezer.