Canada First Mortgage

Ok, so the recession is officially “deeper than what was expected”.  Where does that leave us?  We’ve moved interest rates almost as low as they can go…the key lending rate - cut in half, the prime rate - moved another quarter point downward to 2.25%.  I write this one day before the government announces their “quantitative easing” program…so we’ll see what that brings in terms of ‘economic relief’.

The national economists already said that the banks have virtually nothing left as far as ammunition to massage the confidence of consumers.  The homeowners that CAN take advantage of these low rates, WILL do so by refinancing or by renewing early on their mortgage.  But the spotlight has been on the “new/first time home buyer”.  They are the ones that will fuel and strengthen the economy.  This somehow does not seem to be happening at a rate that has too much of an impact…or so it seems.

According to the news cast last night on CTV (thanks for the Canada First Mortgage plug by the way CTV…), it’s a split in opinion; the consumers love it, while the banks and economists see the overall as concerning…

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