RE: Home Equity Creditand the mortgage is 1.85% but I'd be careful. IMO, 2009 won't be good. Once bad news starts slowing, such as layoffs, foreclosures, bad earnings, etc., then I'd start throwing money in the market.
Here's my take on the major issue. I have a very secure job, salary is well above average, wife is a stay at home mom so our girls have a good upbringing and a full time taxi...lol, don't have a vehicle payment, have two teenage girls who are active in sports, have an education fund for both, have RRSP deductions from my employer, don't spend much on the side for trips, dinners out,etc., have a mortgage under 100K and yet when I look at opportunity elsewhere such as California, I'd have a hard time affording a home there. 350k for something decent..so how are those on an average wage making ends meet?
House prices in large US centers are still too high and our prime minus mortgages don't exist. Buy a 400,000 home at 5% for 30yrs and you're talking $2150 per month. You need to clear a min of $5500 to make ends meet.
It's the root of the problem.
cb