How much longer will we see 1.2% variable rate? Today's variable rate is the lowest since 2006. Discount from Prime rate is the highest. Prime rate is also the lowest except for 2009 during the finanical crisis. Will this continue? It is hard to say. Several factors determine the discount. Fund flow, cost of capital and risk. BOC is expected to raise rate next year and has been reducing its bond purchase. CMHC published a report that shows household mortgage debt is growing at the fastest pace in a decade and almost half of the mortgages have a LTV between 75% and 80%. Although most expect rate to stay low for a while despite the expectedly upcoming rate hike, is the high discount going to be around? Even if it is, how likely will it get better than today's historical discount?