Long term v. short term. Long term, it's always better to take the lowest rate, even if there are fees up front. In the US, we have points added to the mortgage that lower the rate. Those points are tax-deductible. If you are financing a home and plan on it being a long-term financing, then pay the fees to get the better rate.

The Wall Street Journal Prime just dropped to 4.5%, down a half a point. If you have an adjustable rate loan that's tied to prime, then you're rate's going down!