Dear Clients, 

Take your time reading the attached as you will get a lot of information on what is happening below the border and how it is going to affect us in Canada.  To shorten down for you - the increase in manufacturing we have been seeing recently is being created by companies replenishing inventories that they diminished in the last year due to the uncertainties in the market.  No one wanted to be paying the carrying costs on surplus merchandise.  It may take some or most of this year to produce the stock needed but once that is accomplished the demand will level off.  So what we are seeing right now is not sustainable. 

The recovery is going to be a long and painful one which you will notice in the last few weeks.  The banks are being nudged by the Bank of Canada to below prime rates as the central bank refuses to move to 0% so the banks have to lower their spread on borrowing at .25 and lending rate.

So if you have been sitting on the fence about lowering your interest rate now is the time to make a move.  Give us a call at the office # below or email us back and we can work out the #s for you. 

 The last line says it all - that the Bank of Canada will not be able to "tighten" which means they will not be able to raise prime from .25%.

 All the best,  Bank prime is still at 2.25%

 Lock in Rates - not recommending locking in at this time

3 year        3.55

4 year        3.89

5 year        3.99

 Suzanne Boyce