Good afternoon,

What our fearless Canadian finance minister Jim Flaherty was so hot under the collar last year is happening again! The spring real estate market in the GTA is just around the corner and mortgage rates have dropped to below 2.99% in some cases.

Last time this happened Mr. Flaherty made a phone call BMO and asked them to reconsider these low rates.  We haven’t heard from Jim yet but I suspect if other banks and lending providers follow suit “which thye will” it’s only a matter of time before we get a “Warning message” from good ole Jimmy.

A few questions I have:

1. Should we be worried about these rates or embrace them while they last?

2. Should Jim Flaherty have his say and warn the big banks and consumers about the pitfalls?

3. What are the lending institutions responsibilities to the consumer? should the big 5 banks be mandated to show us the worst case scenario at the end of our term if the rates went up to 5.5% or 6.0%?

I have to admit it sure is nice to see my mortgage getting paid down quicker but I do worry about those folks who may have taken on more than they can chew with these attractive rates.

I would love to hear your thoughts.

Have a great day!