If you haven't heard already the Bank of Canada (BofC) cut their over-night lending rate by 50 basis points to an over-night lending rate of 0.50% - an all-time low. The BofC has now lowered it's over-night lending rate by 400 basis points or 4 full percentage points since December 2007.

The big banks were quick to follow suit and matched BofC's rate cut of 50 basis points. Bank prime is now sitting at 2.50% - wow!!!

The BofC's next rate announcement is scheduled for April 21st. So far there is no clear indication of what the BofC will do come April 21st - it really is a wait and see game at this time and probably will be for quite a while. However, the BofC has not ruled out further rate cuts if they feel it is warranted.

The interest rates are already at historical lows. A 5 year fixed rate mortgage can be had for as low as 4.19%; a 1 year fixed rate as low as 3.50%; and a 5 year variable as low as Prime + 0.80% or 3.30% today. Now is certainly the time to take advantage of these LOW borrowing rates whether it is a purchase or re-finance.

-- Masood Vatandoust