The Bank of Canada has lowered its target for the overnight rate by one-half of a percentage point to 1 per cent. The banks have honored the full half percent reduction to the Prime Rate which now places the lender's Prime Rate at 3.00%.
If you have a fixed interest rate higher than 5.00%, it may be worthwhile breaking your current mortgage and obtaining a variable rate mortgage. There will most likely be a penalty involved in breaking your mortgage so it would be wise to have your mortgage specialist do a calculation to see if you will save money. Also, by breaking your mortgage you may avoid being subject to the interest rates available upon your renewal which may be higher due to an improved economy and inflationary pressure (expect to occur any time after 2010).