TORONTO, ONTARIO--(Marketwire - March 4, 2013) - BMO is lowering the rate on its 5-year fixed low-rate mortgage to 2.99 per cent from 3.09 per cent, effective immediately.
"In 2010, BMO introduced Canadians to a five-year fixed rate mortgage with a maximum amortization of 25 years and a very attractive interest rate," said Ernie Johannson, Senior Vice President, Personal Banking Canada, BMO Financial Group. "Since the launch of BMO's fixed low-rate mortgage, Canadians will have saved more than $200 million collectively by the time their mortgages are paid off.
"Today, we are once again making this mortgage, which is perfect for Canadians who want certainty of payment and protection against the risk of rising rates, available at 2.99 per cent. Our message to Canadians is simple: go fixed, go five, lock-in now at a terrific rate and become mortgage-free faster with a shorter 25-year amortization."
"Given that the most likely trend in interest rates is upward and that longer-term interest rates are likely to move first, we believe that locking in for five years is the superior choice," said Doug Porter, Chief Economist, BMO Capital Markets. "Longer-term rates, such as five-year mortgages, can start moving higher well in advance of any action by the Bank of Canada. Current five-year interest rates remain exceptionally low. A five-year term gives borrowers ample protection against the possibility of rates returning to more typical levels in the next few years."
Ms. Johannson added, "BMO's efforts to encourage Canadians to pay down debt and build equity in their homes have been aligned with Minister Flaherty's timely and prudent actions to encourage moderation in the housing market."
"Canadians have 90 days to get pre-approved while they search for the right house that fits within their budget," concluded Ms. Johannson.
For more information on the BMO 5-year fixed low-rate mortgage, please visit http://www.bmo.com/home/personal/banking/mortgages-loans/mortgage/special-offers/low-rate-mortgage.
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.