So... in your opinion... when are interest rates going to rise again.

I'm thinking that rates are going to stay low for at least another 12 months.

Consider a 3 or 4 year fixed rate also instead of a 5 year. They are quite a bit lower right now.

I know it adds up that why I used to add extra money on my mortgage every year to get it down faster.

Actually Joe, I took the FSU101 course a while back, you would be really surprised how much more the total cost of borrowing is over the life of a 5 year fixed rate mortgage rate when the interest rate is even just 0.10% higher. On a $400k mortgage here in the GTA, it adds up.

Mortgage lenders compound interest and that is extremely profitable for them.

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The difference is not that much.

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Here are the rates from invis.

http://www.invis.ca/rates/

I was talking to a fellow and he said he's getting prime -1.75%... which makes his rate ridiculously low. How is this possible?