[quote user=MikeMcC874]I am sitting at prime - 0.75% and wondering if it has gotten any better.
Any opinions on how low this can go?
When prime goes up it'll get better .. perhaps up to prime - 1.5% if prime goes up 2%!
if, as widely expected, prime goes up to 4% (from currently 3%) by year end 2011 in four 1/4% increments it is fair to assume that prime - 1% or even - 1.25% will be reached sometime in 2nd half of 2011.
Loads of cash sitting on banks (or corporations) balance sheets !! LOADS !! And with Canada's long term deficits going lower I expect interest rates to stay LOW for quite some time. 4.x% for 5 year rates fixed .. and prime - 1.y% for variable !!
Hence, the cautious mind should lock in rates .. and the more experienced type with some cash reserves stays variable as prime -1.5% will still be well below the fixed rate of today's best rate of slightly over 4% ! Prime will have to go over 5.5% for variable to be more expensive than today's best rate of 4% !
