Paula Siemens

The Bank of Canada announced today that they are leaving the overnight rate unchanged. They also indicated that they will conditionally keep their plan to leave rates unchanged until the 2nd quarter of 2010. The bond market thought that the Bank of Canada would go back on their word to leave rates alone after Australia and Israel raised their overnight rates, and after strong employment data. ...

Great news. We are finally seeing variable rate mortgages priced below prime. We have not seen any mortgage even close to prime for the past 12 months. In September 2008 we had rates as low as prime -.60% which quickly changed to prime and then to prime + 1% by the end of the first week in October.

We hope that this downward trend in the variable rate market will continue into spring 2010. V ...