OTTAWA, April 22 (UPI) — The Bank of Canada lowered its lending rate by one-half of a percentage point to 3 percent Tuesday with an eye on the slowing U.S. economy.

The half-point cut is the second since March 4, when the bank predicted U.S. conditions would likely require further response in Canada. In its statement, the bank said it expected the Canadian economy will grow by 1.4 percent this year, 2.4 percent in 2009, and 3.3 percent in 2010 but conditions south of the border merited attention.

 ”The Bank is now projecting a deeper and more protracted slowdown in the U.S. economy,” the statement said. “This has direct consequences for the Canadian economic outlook, with declining exports projected to exert a significant drag on growth in 2008.” The bank said inflation is judged to be about 2 percent, “consistent with an economy that was operating just above its production capacity.”

 I believe that this cut will nudge even more Canadians to use some of the equity in their homes to invest in foreclosures, short sales and vacation homes in Florida and other popular destinations for Canadians.

Canadians are already buying in Florida in droves due to the low prices, low interest rates and the fact that a lot of them sold there vacation homes at the peak of the market in 2005 due to scares of increasing hurricanes (this never happened).

If you have not already done so read my previous post on Canadians buying real estate in Florida .

You can learn how to buy foreclosures and short sales with no money or credit here >>>

So if these rate cuts last longer than the 6-24 hours they affect rates here then you have some time do a refinance to get the 10-25% down payment and then look for property on the South Florida Multiple Listing Service here to look for property

Posted under Foreclosure & Mortgages & Real Estate |