Every once and a while when I need some clarification about financial matters, I turn to my my mortgage broker. A good mortgage broker will know what is going on financially with regards to mortgages and bank rates, but a great mortgage broker will be able to explain and breakdown exactly what is going on so that even your grandma can understand.

Yesterday I heard some news about the Bank of Canada, and it is not only lowering the rate again but actually stated that it will not be lowering the rate again anytime soon. I asked my mortgage broker and friend, Franco Briglio who is a manager of residential mortgages for TD Canada Trust, to explain specifically what happened yesterday. I asked him to give me the short version, you can read it below.

The Bank of Canada lowered their overnight rate to 0.25% - a record low.  This directly impacts banks’ prime interest rate, which will move down to 2.25% from 2.50%.  This does not automatically mean that overall lending rates, such as mortgage & loan rates, will go down.  If they do, this will be the last drop until June 2010 when rates are expected to climb.  For the first time, the BOC has stated that the overnight rate will remain unchanged until June ’10.  This indicates that rates have bottomed out and no further cuts are in store – the BOC will look elsewhere to stimulate the economy.  So, those sitting on the fence hoping that rates will drop again, have nothing to hang onto – this is it and it is an amazing time to buy, sell, or invest since rates are at an all time low and will be for some time. - Franco Briglio

Franco has over 15 years of experience handling all types of financing needs, with a background in financial planning to help make your largest investment choice a comfortable one. Most of all Franco is great to speak to when looking for more information about mortgages and other similar products. You can reach him by phone at 613-866-2744 or by email at franco.briglio @ td.com.

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http://www.MattRichling.com

Matt Richling is a sales representative with RE/MAX Affiliates Realty Ltd., Brokerage, Independently Owned and Operated - The opinions of the authors expressed herein do not necessarily state or reflect those of the RE/MAX or RE/MAX Affiliates Realty Ltd., Brokerage.