Bank of Canada Cuts Overnight Rate and Boris Bozic on BNN

We have two interesting bits of information for you today. The first is the Bank of Canada’s recent interest rate announcement, and the second is the appearance of Merix Financial’s Founder and President on the Business News Network.

First, the Bank of Canada announced this morning, March 3rd, 2009, that it would be further decreasing the overnight lending rate by 0.5%, making the new rate 0.5%. While no changes have been made amongst our lenders yet, we can expect them to pass at least part of the 0.5% rate cut on to their prime rates, potentially bringing most lenders’ prime rates down to 2.5%.

You can view, on the Bank of Canada website, the full press release on the matter.

Our second tidbit of news is that Boris Bozic, President and Founder of Merix Financial (one of our lender partners), appeared on the Business News Network program Stars & Dogs on February 27th, 2009. The segment was structured as a debate between the two Stars & Dogs anchors on whether it’s best to enter into a fixed mortgage or a variable mortgage. Mr. Bozic acted as a guest judge, and advised that currently fixed-rate mortgages are the best option, something that First Foundation echoes.

If interested, you may view the stream of the video on the BNN website.