Flaherty on Rates: How Low Can’t You Go?

How low is too low when it comes to mortgage rates?

Apparently the answer to that question is 2.99% on a 5-year fixed.

Finance Minister Jim Flaherty wasn’t too happy that banks broke the 3% barrier on 4- and 5-year rates back in January and March. He implied that those rate promotions were essentially irresponsible with Ottawa trying to temper credit growth.

“I think they’ve moved away from offering sales on mortgage interest rates. That was something we discouraged,” he told the Globe & Mail recently.

 

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