May 11, 2010 - Interest rates move downward.

May 11, 2010 – Interest rates move downward.

Not that we want our friends to suffer but the EU financial crisis has created a positive outcome on this side of the ocean. Our mortgage lending rates have come down. Now there is a 5 year rate of 4.39% available with a 120 day rate hold. Also due to the financial misery of our friends across the ocean, there is speculation that the Bank of Canada will not raise the overnight lending rate in June or July. This makes the variable mortgage a less risky option. But due to Jim Flaherty’s newly created lending rules, to take advantage of the variable rate mortgages, the borrower has to qualify using an interest rate of 6.25%.