Source:  Invis Financial (www.invis.ca)

"The Bank of Canada reduced its key interest rate by a quarter point (April 21st) to its lowest level ever.  In its announcement, the Bank also stated that it expects to hold this policy rate at its current level until the end of the second quarter of 2010, conditional on the outlook for inflation."

"While rates for variable rate mortgages are typically impacted by Bank of Canada policy rate changes, what's interesting is that rates for popular five-year fixed rate mortgages have been declining significantly in recent months.  The reason behind this drop is an abundant supply of money being put into circulation, as well as guarantees of government agencies to purchase mortgage investments."

"A comparison of fixed rates today versus six months ago shows a noticeable improvement in purchasing power.  Six months ago, a competitive rate on a five-year fixed mortgage was 5.75%.  At this rate, the monthly payment on a $250,000 mortgage with a 25-year amortization was $1,563.  With the five year rate of 3.95% available today, the monthly payment falls to $1,308, which adds up to a savings of $15,300 in payments over the five year term."