The biggest news this month has been how low interest rates have moved. With the Bank of Canada overnight lending rate at 0.5%, we have officially hit a historical low. Many economists are predicting that the overnight lending rates will not move much lower. Instead the Bank of Canada is looking at different means of stimulating the economy.

More good news for people holding a variable mortgage and those individuals currently looking to buy property - the Bank of Canada announced another reduction to their overnight lending rate from 1.5% to 1%. Most of the banks are following suit with a half a percent reduction to their prime rates from 3.5% to 3.0%.