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The Prime Rate is Down Again

Posted on December 10, 2007 at 11:22 am 
Filed Under Financial Markets, Mortgage Planning

The Bank of Canada just lowered the overnight lending rate, but what does that mean for you?

The most important news of late is the fact that the Bank of Canada reduced their overnight lending rate to 4.25%.  In turn, mortgage lenders have also decreased their prime lending rate to 6.00%. How does this affect the average borrower? Well, if you have a fixed rate then it does absolutely nothing. If you have a variable rate, then you should see a reduction to your interest rate by .25%.

Your Take-Away: If you will be closing a mortgage over the next four months, you should seriously be considering a variable rate product since there is indication from the Bank of Canada that further rate reductions may be needed early in the New Year.  The increased pressure to continue to reduce rates comes from the hope that Canada will be able to minimize the damage that the higher Canadian dollar and the U.S. credit crunch have had on the economy.

We’ve said it before, and we’ll say it again, don’t just assume a fixed rate is the only way to go.  Talk to a Professional and determine if you are a candidate for a variable rate, it may save you $100’s if not $1,000’s of dollars over the next few years!

Until next time, have a Magnificent Monday.

Elisseos & Chris

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One Response to “The Prime Rate is Down Again”

  1. The Prime Rate is Down Again · Lending News on February 19th, 2008 3:13 pm

    […] rss@cpatechnologyadvisor.com (Isaac M. O’Bannon, Technology Editor) wrote an interesting post today onHere’s a quick excerptThe most important news of late is the fact that the Bank of Canada reduced their overnight lending rate to 4.25%. In turn, mortgage lenders have also decreased their prime lending rate to 6.00%. How does this affect the average … […]

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