Wednesday, December 10, 2008

Current Interest rates after Bank of Canada Rate cut on December 10th

The Bank of Canada surprised us all yesterday morning with deeper cuts than expected as they announced cuts of 3/4 percent.

Back in October when the rate was last slashed by 75 basis points (3/4 percent), the lending institutions were sluggish and reluctant to respond with equivalent cuts as they have all been stating that they are losing money on variable rate products.

So far, the banks have only cut their bank prime by .5% not the expected .75% Current bank prime is 3.5%

It will be interesting to see how they respond following this announcement. If they do in fact match the Bank of Canada's rate cut, the prime rate will become 3.25%. This would set the lowest available variable rate at 3.85% should the banks follow suit.

As it stands today, the lowest rates are as follows:

1 year 4.35%
2 year 5.05
3 year 5.15
4 year 4.95
5 year 5.19
5 year ARM 4.60

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A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

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