Candian Mortgage Rates Drop To Historic Levels

We have seen the banks in Canada, finally lower the rates to help the consumer. The bank of canada reduced there rate to a historic low level of 1%, the banks did match the rate cut. Bank prime is now at 3.00%. We have also seen the fixed rates lower to record low levels! this is all very good news for the consumer. This should start helping build the confidence that everyone needs.

Prime Rate ToDrop?

We should see the prime rate drop by .50% tomorrow. Most economist's are predicting a drop by that much.I believe we could see a .75% drop and we do need the banks to match the full drop. The banks should already be lower by .25%, that they have held back already. If they do not pass on the full savings, we should see a lot of pressure from the Canadian government to pass on the savings to the consumer.

Canadian Mortgage Market In 2009

Since my last blog, we are seeing historic interst rate cuts from around the world. In the last 30 days the US has set there rate at Zero and the Bank of England now has the lowest rate since 1694! We are now in uncarted waters for prime rates and forecasting of the future. There does seem to be a concensious that rates will continue to be low and will be going even lower in Canada. This is good news for the consumer. We are now able to borrow money at historic low rates and then purchase items at discount prices. This is now a great opportunity to llok at how you can take advantage and move ahead in the new world.