June 27, 2009 – 11:54 pm
In the wake of the global financial crisis, Canada’s government has slashed interest rates to historical lows in an effort to stimulate the local economy and keep Canadians borrowing. This has created nearly ideal conditions for homeowners and new homebuyers to secure excellent rates on their mortgages.
Currently, the Bank of Canada has set its prime rate at .25 percent, or a quarter of a basis point, and says it will keep it there (barring unforeseen complications with inflation) through to next year. This puts the bank prime rate at 2.25 per cent, the lowest ever seen.
While the days of offering mortgage rates below prime are clearly over, banks are still offering some extremely good deals on variable and short-term rates. So what do you need to know to get the very best rate out there?
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