Was the Bank of Canada’s interest rates in the early 2000s and prior really that much higher than now? How did people have mortgages?
With the Bank of Canada's interest rates increasing so precipitously I wanted to see how it compares to what its rates have been historically.
I looked at this site: https://tradingeconomics.com/canada/interest-rate
Right now our interest rate is 2.5 but it looks like back in the mid 2000s it was almost 5%, and in the early 1990s as high as 14%! Does that mean in comparison we're not doing too badly?
How did people afford mortgages back then if the interest rate was in the double digits? At that point if you were able to it would be better to buy in cash right?
submitted by /u/howdoesinterestwork
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