2.7% flexible mortgage.

Since Canadian prime rate is lowered to 3.5%, some of my flexible mortgages get really low. The best is at prime rate - 0.8%, which is 2.7%!

The second best I have is prime minus 0.7%.

The rate I got two months ago was prime minus 0.4%.

The banks do not give these discounts any more. These rate were got when the prime rate was 6%. Now, instead of minus, the new rates are prime plus half or even one percent.

Because the banks still charge me the same amount every month, the interest part decreases substantially, and the principal part increase accordingly. As a result, some of the principal amount now accounts for fourty percent of the total payment. For a 25 year mortgage, it normally would take ten years before that to happy had the rate being fixed, not it happens after less than three years. This will greatly shorten the mortgage life span, if the rate keeps being this low for a while.