Borrowers are going to enjoy 2008! I'm sure you have heard by now that we're expecting rate drops in Canada to avert a potential recession. No one likes the "R" word, although a typical outcome during recessions is lower borrowing costs. Click here to read the Bank of Canada's rationale behind the most recent interest rate cut. Meanwhile, CMHC is expecting healthy housing sales in Canada...not a bad mix.

Remember that a good "Mortgage Plan" can save you money, so engage a mortgage professional who understands what they are doing. The focus should always be on how the borrower is positioning themselves to pay less interest and avoid the costly mistake of fixating on their actual interest rate. Currently, most mortgage borrowers want to leave there options open with a variable rate mortgage. These mortgages are available for as little 4.75%, which has the likelihood of even going lower. Variable rates also accommodate borrowers who prefer fixed but do not want to lock in just yet. If someone is considering a fixed mortgage at this point, the five year rate is approximately 5.75%.

How are you doing with your new year's resolutions? If you're like most people, they're probably long forgotten. It's so easy to just slip back into our daily routines. One thing you should resolve to do this year though is to "plug the money leaks". VISA and Mastercard statements for our holiday season debt are starting to come home to roost. And you may be thinking of a spring or summer getaway. That's why it's important to take a look at all of the little things that add up over time. Click here to read more on plugging the money leaks.

If a family member, friend or colleague is considering buying their first home, please let them know about the Ontario government's proposal to offer a maximum $2,000 Land Transfer Tax Refund to first-time homeubyers who purchase a resale home. If you know someone who is in this position, have them call me or click here and send them this article.