The low interest rates we have today may be here for longer than was originally expected. The Bank of Canada had said it planned to keep the overnight lending rate at 0.25% into the second quarter of 2009, now the rate may stay as low or very close to this rate into 2011. This news comes after the world's leading central banking leaders met in Wyoming on the weekend. In a recent article published in the Financial Post, there a some great points on why:
"It seems more likely that there will be no increases in interest rates in any of the major economies over the next 12 to 18 months."
Most leaders around the globe agreed with this but also warned not to leave the rates too low for too long.
Read Full Article Here - Financial Post - August 24, 2009
For anyone who is renewing your mortgage in the next few months and prefers to take variable rate mortgages, you should consider a 3 year term at Prime + 0.15 = 2.4% (today). You may also want to consider a 1 year rate @ 2.65% or a 2 year rate at 2.90%. It is always best to consult with a Mortgage Professional prior to accepting your renewal and always shop around for the best mortgage product.
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