My friend Rita from Mortgage Alliance, here in Dundas, is on top of things once again. Here's a little insight from her on mortgages in this challenging economic time:

"It looks like those who are sitting in variable rate mortgages or credit lines,  are getting an early {New Year's gift} this year. As expected the Bank of Canada did announce a drop in the overnight rate {before Christmas} but what was a little surprising was the fact that it was a full .75% drop.... That places the overnight bank rate at 1.75% which is the lowest since 1958. The Bank's have dropped their Prime lending rate by  only .50 which makes Prime 3.50% 

This is the lowest overnight rate's since 1958, now I was around in 1958 but  too young to remember any of this. 

I now have major lenders offering 5 year fixed rates at 4.99%  and Prime +.60 is also a great way to go.  So what I am telling you with this email is that  if you have a fixed mortgage at above 5.00% it is a good time to consider breaking out and benefiting from the 50 year low in the Bank Rate.  Re-financing early can save you thousands of dollars over the course of your mortgage with these lower rates and the savings in interest  far outweighs the penalty to break your current mortgage, then you can sit back and relax for the next 5 years instead of worrying about what rates will be when your mortgage comes due."

My friend Rita Cruse can be reached at: rcruse@cogeco.ca
Office: 905-529-1199
Toll Free: 1-877-529-1199
Fax: 905-628-7917 or 1-866-805-9653

Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.