The benchmark interest rate in Canada was last recorded at 2.25 percent. This dataset provides - Canada Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Discover the booming Canadian home lending market! Explore key trends, growth projections (CAGR > 5%), leading lenders (HSBC, Tangerine, BMO), and market segmentation insights for 2025-2033. Analyze the impact of interest rates, regulations, and economic factors on this dynamic sector. Recent developments include: On March 15, 2022, First Ontario Credit Union announced its merger with Heritage savings & Credit union to offer the best in financial products and services., On February 09, 2022, Hello safe announced a new partnership with Hard bacon, a personal finance application used by more than 35,000 Canadians, this partnership is to leverage Hard bacon's portfolio of comparison tools.. Notable trends are: A Rise in Home Prices Boosting Home Equity Lending Market.

In 2025, mortgage interest rates in Canada decreased. The five-year insured fixed mortgage interest rate as of May 2025 stood at **** percent, making it the most affordable mortgage type. Meanwhile, the insured mortgage rate fixed for under one year was the highest, at **** percent.

Rates have been trending downward in Canada for the last five years. The ebbs and flows are caused by changes in Canada’s bond yields (driven by Canadians economic developments and international rate movements, particularly U.S. rate fluctuations) and the overnight rate (which is set by the Bank of Canada). As of August 2022, there has been a 225 bps increase in the prime rate, since beginning of year 2022, from 2.45% to 4.70% as of Aug 24th 2022. The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

The North American mortgage/loan broker market, encompassing the United States and Canada, exhibits robust growth potential. Driven by factors such as increasing homeownership aspirations, fluctuating interest rates stimulating refinancing activity, and the rising complexity of mortgage products requiring expert guidance, the market is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 5.00% from 2025 to 2033. This growth is further fueled by the expanding segments within the market. The enterprise segment, particularly the medium and large-sized businesses, demonstrates strong demand for efficient loan processing solutions offered by brokers. Within applications, home loans continue to be a major driver, followed by growing demand for commercial and industrial loans, reflecting an active construction and business investment landscape. The increasing number of individuals and businesses seeking financial assistance contributes to market expansion, with geographical variations existing between the United States and Canada, reflective of their distinct economic climates and real estate markets. The presence of established players like PennyMac, Home Point, and JP Morgan Chase, alongside numerous regional and independent brokers, indicates a competitive yet dynamic market landscape. However, the market faces certain restraints. Economic downturns, stricter lending regulations, and technological disruptions impacting traditional broker models pose challenges to sustained growth. Nevertheless, the adaptation of innovative technologies, such as online platforms and AI-powered tools, by brokers is expected to mitigate these challenges. The segment comprising loans to governments, while presently smaller, presents a potential avenue for expansion, especially considering infrastructure development projects and government initiatives. Effective segmentation strategies, focusing on specific customer needs and leveraging advanced technologies, are crucial for brokers to gain a competitive edge and capitalize on market opportunities in the years to come. The overall outlook remains positive, with significant growth prospects for well-positioned players in the coming decade. Recent developments include: In November 2022, To expand the use of eNotes across 250 locations in 49 states, Primary Residential Mortgage Inc. (PRMI) employed the eVault and digital closing platform from Snapdocs., In August 2022, Due to the slowdown in home sales caused by rising interest rates, the two biggest mortgage lenders in the US are increasing pressure on their smaller rivals by providing discounts and other incentives. The two biggest mortgage originators in the US, Rocket Mortgage and United Wholesale Mortgage, respectively, are pursuing aggressive strategies at a time when many lenders are leaving the market or going out of business.. Notable trends are: Increase in Digitization in Lending and Blockchain Technology is driving the market.

We examine the relationship between concentration and price dispersion using variation induced by a merger in the Canadian mortgage market. Since interest rates are determined through a search and negotiation process, consolidation weakens consumers' bargaining positions. We use reduced-form techniques to estimate the mergers' distributional impact, and show that competition benefits only consumers at the bottom and middle of the transaction price distribution, and that mergers reduce the dispersion of prices. We illustrate that these effects can be explained by the presence of search frictions, and that the average effect of mergers on rates underestimates the increase in market power.

In September 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In September 2025, Russia maintained the highest interest rate at 17 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.3 percent in September 2025. In contrast, Russia maintained a high inflation rate of 8 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

The North America mortgage/loan broker market exhibits robust growth potential, projected to reach a substantial market size. While the exact 2025 market size ("XX") isn't specified, considering a typical CAGR of 5.00% and industry trends, a reasonable estimate for the 2025 market value could be placed between $150 billion and $200 billion (in USD). This significant value reflects the increasing complexity of the mortgage market, driving demand for expert brokerage services. The market's expansion is fueled by several key drivers, including rising home prices, low interest rates (historically), increasing consumer demand for personalized financial advice, and the expanding adoption of digital mortgage platforms. Emerging trends such as fintech integration, AI-powered lending solutions, and a heightened focus on customer experience are further shaping the competitive landscape. However, regulatory changes and economic uncertainties present potential restraints, impacting the overall market growth. The market is segmented by various factors such as loan type (conventional, FHA, VA), loan size, and borrower demographics. Key players like PennyMac, Home Point, Caliber Home Loans, Fairway Independent Corporation, JP Morgan Chase, Royal Bank of Canada, Flagstar Bank, PNC Bank, Ally, and New American Funding (among others) are actively competing in this dynamic market, employing various strategies to attract and retain clients. The forecast period (2025-2033) presents opportunities for significant expansion driven by consistent technological advancements and a growing preference for expert guidance in navigating the mortgage process. The projected 5.00% CAGR from 2025 to 2033 indicates a steady and sustained growth trajectory for the North American mortgage/loan broker market. This growth is expected to be driven by an increasingly complex regulatory environment and the need for personalized financial advice for both first-time homebuyers and experienced investors. Furthermore, an aging population, coupled with the desire for homeownership, is expected to fuel demand for mortgage brokerage services. Companies are continuously adapting their business models to incorporate technological advancements and optimize customer experience, leading to increased efficiency and market penetration. Competition is intense, with established players and new entrants vying for market share. Strategies focused on providing personalized service, leveraging technology, and building strong client relationships will be crucial for achieving success in this competitive landscape. Notable trends are: Increase in Digitization in Lending and Blockchain Technology is driving the market.

The global Mortgage-Backed Security (MBS) market is poised for significant expansion, with an estimated market size of $2,500 million in 2025. The market is projected to grow at a Compound Annual Growth Rate (CAGR) of 7.5% through 2033, reaching approximately $4,400 million by the end of the forecast period. This robust growth is primarily fueled by increasing housing demand and a dynamic real estate sector, particularly in emerging economies. The rising popularity of residential MBS, driven by a desire for diversified investment portfolios and stable income streams, is a major catalyst. Furthermore, evolving financial regulations and innovative securitization techniques are creating a more conducive environment for MBS development and adoption. The market's expansion is also supported by the increasing sophistication of financial institutions in managing credit risk associated with mortgage portfolios. The Mortgage-Backed Security market is segmented into Commercial MBS and Residential MBS, with Residential MBS expected to dominate due to sustained demand for homeownership and favorable lending conditions. Key applications include Commercial Banks, Real Estate Enterprises, and Trust Plans, all of which are actively participating in the securitization process. Leading players such as Construction Bank, ICBC, and Bank of China are instrumental in shaping market dynamics through their substantial involvement in mortgage origination and MBS issuance. Geographically, the Asia Pacific region, led by China and India, is anticipated to be the fastest-growing market, owing to rapid urbanization and a burgeoning middle class. Conversely, North America and Europe, while mature, will continue to be significant contributors, driven by established financial infrastructure and ongoing housing market activities. Restrains such as interest rate volatility and regulatory scrutiny are present, but the overall market trajectory remains strongly positive. This comprehensive report provides an in-depth analysis of the global Mortgage-Backed Security (MBS) market, spanning the historical period of 2019-2024 and projecting future trends through 2033. With a base year of 2025 and an estimated year also set for 2025, this study offers granular insights into market dynamics, key players, and regional dominance. The report is structured to offer a holistic understanding, from concentration and characteristics to future projections and key drivers of growth.

The statistic shows the average inflation rate in Canada from 1987 to 2024, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2022, the average inflation rate in Canada was approximately 6.8 percent compared to the previous year. For comparison, inflation in India amounted to 5.56 percent that same year. Inflation in Canada In general, the inflation rate in Canada follows a global trend of decreasing inflation rates since 2011, with the lowest slump expected to occur during 2015, but forecasts show an increase over the following few years. Additionally, Canada's inflation rate is in quite good shape compared to the rest of the world. While oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. This has helped to offset some of the impact of dropping oil and gas prices and the effect this has had on Canada´s inflation rate. The annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade. The same is true for housing and other price indexes for the country. In general there is some confidence that the inflation rate will not stay this low for long, it is expected to return to a comfortable 2 percent by 2017 if estimates are correct.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up but remained stable throughout 2024. In the second quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

Homebuilders have endured considerable volatility. Immigration into Canada has led to unprecedented population growth, exacerbating an existing housing crisis. New housing starts haven't kept up with the population growth, making homebuilders more critical than ever to meet housing needs. Home shortages and changes in buying behaviour supported homebuilders during the COVID-19 pandemic early in the recent five year period. Still, the pandemic's disruption to global supply chains didn't spare contractors, with equipment and material costs reaching unprecedented highs. Interest rate hikes in 2022 and 2023 slowed new relevant housing construction, spurring apartment building construction as consumers increasingly sought out renting. Also, the First Time Homebuyer Incentive, which seemed like a potential boon to homebuilders, largely lacked success and was repealed. Industry-wide revenue has been declining at a CAGR of 0.1% over the past five years – totaling an estimated $30.3 billion in 2025 – when revenue will climb an estimated 1.6%. The Bank of Canada raising rates in 2022 and 2023 led to a massive slowdown for homebuilders, even as the Canadian government tried to ramp up the number of housing units constructed. Higher interest rates make developers cautious about new projects, drive up construction costs for builders and push potential homebuyers out of the market. The Bank of Canada has decreased rates in 2024 and 2025 for the first time since 2022, potentially providing a boost to homebuilders. Labour shortages for home builders have hiked wage costs and hindered profit. Homebuilders will enjoy solid growth over the next five years. Interest rate cuts and low housing supply will spur downstream homebuying activity. Still, labour shortages and material costs will continue to strain contractors' capacity. These challenges will impact the broader construction sector, incentivizing federal and provincial governments to fund workforce development and tech adoption programs. Government initiatives like the First-Time Home Buyers’ Tax Credit, the First Home Savings Account (FHSA) and the Home Buyers Plan (HBP) will support homebuilding. Homebuilders' revenue is forecast to expand at a CAGR of 1.7% to $33.0 billion through the end of 2030.

The Landscape Services industry has navigated a volatile economic terrain, but has emerged as a net winner. After a downturn due to sluggish spending by commercial real estate clients and fierce competition for residential customers' disposable income, landscapers have reaped benefits from the burgeoning residential housing market. Residential markets have expanded despite the Bank of Canada's aggressive rate hikes aimed at curbing inflation. Recent rate cuts have further fueled spending on landscaping services, both from new housing developments and upgrades to existing homes. As a result, industry revenue is forecast to rise at a CAGR of 2.1% over the past five years to $14.6 billion, including growth of 1.9% in 2025 alone. Despite growth, landscapers have been hard hit by inflationary pressures, with the cost of equipment, fuel, materials and wages continuing to rise. The price of fertilizer, a key input for landscapers, who use it to treat lawns and keep other plants healthy and growing strongly, soared by more than 30.0% in 2021 and more than 50.0% 2022. Price increases this intense have forced landscapers to pass on costs to their customers, with more than three-quarters of landscapers raising prices in 2023 and 2024. While profit margins remain higher in 2025 than they were in 2020, they have been pressured by rising prices as landscapers have been weary about raising prices for fear of losing sales to competitors. Landscaping services will continue to grow steadily in the coming years as clients increasingly focus on sustainable designs in response to climate change. With the economy also expected to expand, commercial construction will look to incorporate extensive green spaces, while residential customers will remain a bedrock of the industry, with home construction and renovation projects benefiting from further interest rate cuts. As a result, industry revenue will increase at a CAGR of 1.9% to $16.1 billion over the five years to 2030.

Prices for Canada 5Y including live quotes, historical charts and news. Canada 5Y was last updated by Trading Economics this December 2 of 2025.

Canada’s Floor Covering Stores industry is stabilizing after a volatile stretch, with revenue up 0.4% to CAD 6.6 billion in 2025. Over the past five years, revenue has expanded at a CAGR of 1.7% despite housing’s boom-bust dynamics and inflation headwinds that tempered big-ticket purchases and pushed sales toward value offerings. Turnkey services, tighter inventory, special orders and promotions timed to interest rate cuts helped defend profit as big-box rivals expanded in-stock assortments and BOPIS. At the same time, resilient surfaces and project bundling supported throughput even as average tickets normalized.​ Over the past five years, revenue whiplashed as 2021’s residential surge—14.0% construction growth and 24.5% more housing starts—lifted sales 12.5% before 2022–2023 construction pullbacks of 10.5% and 8.3% thinned pipelines and softened volumes under rising rates and accelerated inflation, respectively, prompting shoppers to delay upgrades or trade down to rugs and resilient formats that compress gross profit. Specialty stores leaned into white‑glove measurement, design and installation to differentiate against national chains and hard‑surface warehouse formats. At the same time, digital tools—visualization, real‑time inventory, samples‑by‑mail, SEO and instant quoting—became table stakes that widened the gap between omnichannel leaders and independents struggling to fund ongoing content and integration work. Looking ahead, sales are projected to climb at a 1.2% CAGR to CAD 7.0 billion by 2030 as easing Bank of Canada policy, firmer real incomes and steadier construction unlock deferred moves and renovations. With residential renovation outlays set to expand 2.5% annually and unemployment expected to dip 1.1% over five years, product mix will shift toward higher‑quality hardwood, engineered wood and premium LVP. Competition will intensify from big‑box, online and specialist formats, pressuring pricing and nudging profit lower unless stores pair disciplined inventory and private‑label value tiers with transparent pricing, bundled installation, financing and verified reviews. At the same time, visualization‑driven journeys and low‑VOC, sustainability‑forward assortments meet rising expectations and support premium closings.