One year prime mortgage rates at 6.5% are modestly lower than their 2007 highs of 7,35%. However, despite the federal government’s implicit guarantee of half the insured mortgage market and an explicit program to directly purchase mortgage assets from major Canadian financial institutions the gap between the BOC’s prime rate and the 1 year prime mortgage rate has increased to record levels: the gap now stands at 4%.
Relentlessly Progressive Political Economy 