Globe and Mail
A huge swath of Canadians are too young to remember those extraordinary days of super-high interest rates. But while a return to such heights is not a likely prospect, economists say, it wouldn't take much of a hike to play havoc with the finances - and the psyches - of today's homeowners. Five-year fixed rate mortgages were more than 15 per cent for about two years, from the fall of 1980 to the fall of 1982, peaking at just over 21 per cent in the second half of 1981. The Bank of Canada was cranking up its rates at the time, to try to stem the runaway inflation that was playing havoc with the Canadian economy.