Why Interest Rates Aren’t “High” and Why the Internet Is Lying to You

Fear Sells. Reality Doesn’t.

Scroll through real estate forums and you’d think the sky is falling. “Rates are the highest ever.” “Investing is dead.” That narrative exists for one reason: fear grabs clicks.

Here’s the truth: rates today are not high. They’re normal. What’s abnormal was the zero-rate decade that spoiled everyone.

The Historical Context No One Talks About

• 1980s: mortgage rates hit 18%.

• 1990s: 8–10% was normal.

• 2000s: 5–7% was baseline.

Today’s 4.5–5.5% range is historically average. The only people calling it “high” are the ones who built business models around free money.

Why the Narrative Persists

• Media needs clicks. Panic sells.

• Gurus need intent. If you think you’ll miss out, you’ll buy their course.

• Investors want excuses. Blaming rates is easier than admitting you overpaid.

How To Think About Rates in 2026

• Anchor to inflation. If inflation runs 2–3% and debt is 5%, you’re borrowing at a 2–3% real cost. That’s not brutal.

• Capitalize on stability. Rates aren’t swinging month-to-month like 2022–23. That stability lets you plan.

• Look at spreads. If your property yields 6–7% and your debt costs 5%, you still win.

Case Study: Hamilton 10-Plex at 5.1%

• NOI: $140K

• Financing: 70% CMHC at 5.1%

• DSCR: 1.28

The deal cash flows. If you waited for “lower rates,” you’d be sitting on cash earning 4% instead of building equity.

Investor Playbook

• Stop listening to fear-driven narratives.

• Rates are historically average, not extreme.

• Focus on spreads between NOI yield and debt cost.

• Stability matters more than cheap money.

• OntarioMultifamily.ca connects you with professionals and deals that work in the real market, not the imaginary one sold by online gurus.