Mortgage ratees continue to stay low

Canadian fixed mortgage rates continue to stay at record lows.  The bank of Canada was forced to keep its overnight rate at 1% (bank prime 3%) on the last announcement June 5th.  It acknowledged the European debt crisis has caused a sharp deterioration in the global sector.  The BoC has not increased rates since September 2010 and is clearly in a holding pattern.

Economists are now speculating it could be some time before rates increase and some are even calling for a possible decrease if the Global crisis don't improve.  Either way this is good news for Canadians who want to borrow money.

When interest rates are low it effects all aspects of credit, from car loans, lines of credit, and the biggest of all mortgages.

With 5 year fixed rates as low as 2.99% many people are refinancing their current mortgages into lower rates and to consolidate higher credit card debt, allowing them to save thousands of dollars in interest.