With the 1/2% drop in the Bank of Canada’s overnight rate, the next question is whether there is still room to lower rates further.   According to some of the major banks, yes, there is.  Here’s what some of they are saying:

• CIBC World Markets – CIBC’s economists are forecasting another 1/2% drop in the BoC’s overnight rate.
• TD Bank – Another 1/2% reduction for 2009
• RBC – This bank forecasts interest rates to remain the same for 2009
• BMO – BMO newsletter indicated that rates cuts are still a possibility

Fixed rates have dropped as well.  A standard fixed rate is around 4.39% – 4.54%.  If you have locked-in late last year when rates were at its peak, it may benefit you to refinance at current lower interest rates.  Be sure to discuss your options with your mortgage professional.

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