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What did you think I meant ? Your office window?  All kidding aside despite some challenging times ahead for credit markets one very big thing happened today to bring more stability to our markets.  The government of Canada announced that they will guarantee interbank lending.  This has been called upon by economists all week and the government complied.  What this does is allow the banks to have confidence in lending to each other which has the immediate effects of the banks matching the bank of Canada rate reductions on their bank prime rates. This makes it so that jumping now to a fixed rate mortgage is not advised.  Particularly for anyone who was fortunate to get a Prime – .90% interest rate from last year.  We foresee the Bank of Canada continually dropping the bank rate into 2009 and then likely flat for some time throughout 2009.  Assuming the bank starts to see inflation peak up in late 2009 we may see it edge up then. Soooo, hold on and keep that attractive Variable rate mortgage. 

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