This means that the bank will use prime (currently 3%) minus .8% which is 2.2% at the moment. If Bank of Canada increase overnight lending from 1% to 1.25% come September 7th (this will be the next scheduled announcement), then you would be paying 2.45% interest rate.

ON Canada - speak to a mortgage broker/agent to help you get a lender which offers 0 downpayment for a property. You still need 1.5% closing cost allowance in order to make the purchase. This can easily be done, email me at victor_catalan@centum.ca and we can review your option. Thank you.

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The bank is offering a line of credit sale. i pay no fees, the bank is covering all closing costs, state taxes, appraisal fees and the first year annual fee. i can take out a line of credit on the equity of my house. the rate is prime minus 1/2. what is in it for them? could there be a hidden downside for me? what do you think?

This sounds normal to me. They make their money on the interest and incidentally, you must have good credit becuase prime minus half is good. I don't think their costs incurred are all that much and half the time the appraiser doesn't even look inside the house. It's basically a good source of low cost credit for people with equity in their homes. (low risk for them.) I assume it's a reputable bank.

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Mazda offers 60 months 0% financing on the mazda 2. but they do not offer a either/or option. example: 0% financing or $1500 cash back. shouldn't there be an either/or option? i want to pay cash for the car. the msrp is $14,975. if i got a loan from my bank at the prime rate for 60 months, it would cost me $2118 in interest. so that also means if mazda is going to pay for my interest, it is costing mazda $2118, right? so what if i offer them $14,975 minus $2118 ($12,857). if fact, i would like to knock the msrp down by $500 making the new price $14,475 and then subtract the interest from that. 14,475 - 2118 = 12,382. is my theory of reducing the interest amount from the msrp logical? (remember.. there is no cash back option)

What sometimes happens between a finance corporation and an automobile company is that they make a deal where qualified people will receive low or zero percent loans as long as the auto company will direct other buyers to the finance company who don't qualify for the zero percent rate. The dealer is able to sell more cars and the finance company is able to generate more loans. A great many more people will not qualify for the zero percent rate than for the standard interest rate, so it is a win, win situation for both the auto dealer and the finance company. Since you are paying cash for the vehicle you should not even consider the financing and just do your homework on the internet and determine what is a reasonably low price for the vehicle equipped the way you want it. If you are a member of AAA or any of the other auto clubs they quite frequently can get you a reduced price on a new vehicle.