The Bank of Canada has been holding firm on interest rates, even as the Fed and many other central banks have been making cuts.
And the Canadian stance on rates means that borrowers are paying more for their mortgages than in many other developed nations, where mortgage rates are often less than 1% and negative in some cases.
A study from HuffPost Canada reveals that the lowest rate for commonly purchased mortgage products in Canada is 2.392%, ahead of rates in countries including Spain (2%), the UK (1.65%), Italy (1.6%), Germany (0.5%), Japan (0.37%), and the minus 0.5% rate offered by one bank in Denmark.
Rates are higher in countries such as Australia (3.09%), the United States (3.1%), and China (4.25%).
The analysis does not account for different mortgage terms and amortizations, simply the lowest rates available.
While many central banks have been cutting the rates at which banks borrow, the BoC has resisted this so far and recent polls among economists suggest it will be some time before this changes, notwithstanding an economic downturn.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate