09/02/2026
The last prolonged downturn in the Toronto real estate market began in March 1989. At the time, the posted rate for a five-year fixed mortgage was 12.75%. Today, that same posted rate is 6.09%—less than half.
But there is one enormous difference: the price of the house.
In 1989, the average GTA home sold for $273,698. Today, the average price is $1,003,956.
So while mortgage rates are dramatically lower than they were in 1989, buyers are financing homes that cost nearly four times as much. That changes the affordability equation—and helps explain why today's market can remain under pressure even without 1989-style interest rates.
The chart tracks the posted mortgage rates of Canada’s six major chartered banks: RBC, TD, BMO, Scotiabank, CIBC, and National Bank.
These are the banks’ official posted rates, not promotional or discounted rates. Posted rates may be used when calculating mortgage prepayment penalties and have historically played a role in mortgage qualification benchmarks.
Source: Bank of Canada
