Variable to stay low for another year

This article from The Financial Post will ease the worry lines out of those riding the variable rate. It looks like at least another 6 to 8 months of low rates and big savings for home owners and investors.

"With the Canadian economy doing surprisingly well over the past six months, many see higher interest rates from the Bank of Canada in the not so distant future, but according to a report released Thursday from CIBC's chief economist Avery Shenfeld, rates are likely to remain at a very low 2.5% through to 2011.

In CIBC World Markets' latest Global Positioning Strategy report, Mr. Shenfeld lists several reasons for Bank of Canada Governor Mark Carney to keep interest rates subdued after July. He points out that the U.S. will probably have a more gradual approach to raising rates and if Canada gets too far ahead, that could send the Canadian dollar soaring."

So enjoy it while it last - if you use your smarts and bank the difference in what you would have paid at a higher rate you might have quite a lot put away for a rainy day.