Year Of Rock-Bottom Rates Promised By Central Bank

Move to explore new ways to instill confidence in economy.

Governor Mark Carney is not known for his openness but with total transparency Canada’s central bankers said yesterday that they intend to leave the benchmark lending rate at a record low of 0.25 per cent and “at its current level until the end of the second quarter of 2010″.

Lenders will be able to set prices for mortgages, credit lines and other loans with the certainty that the central bank will not suddenly increase rates.

Now is the time to refinance.The cost of borrowing has dropped by 4.25 percentage points since December of 2007.

I have found a number of potential buyers sitting on the fence waiting to see what happens. Understandable in these uncertain times. However I can only emphasise that prices in this area are not plummeting, the average price in Wasaga beach, Collingwood and Barrie rose in 2008.

And mortgage rates have never been this attractive.

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