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Mortgage Broker News | 02 Sep 2010, 09:01 AM Agree 0
BMO dropped its five-year fixed "low frills" rate yet again from 3.79 per cent to 3.59 per cent.
  • Annon | 03 Sep 2010, 02:26 AM Agree 0
    Can someone please explain why this magazine keeps promoting a bank that turned their back on the Independant Mortgage Broker community tears ago.
  • MortgageMazeYYC | 03 Sep 2010, 02:28 AM Agree 0
    It's a good number that might grab some business to those that don't look behind the rate. But when there is a 3.65% out there with 20% prepayment per payment, and 20% annual lump sum, you'd save wayy more.
  • John | 03 Sep 2010, 02:34 AM Agree 0
    Annon's asked: Can someone please explain why this magazine keeps promoting a bank that turned their back on the Independant Mortgage Broker community tears ago.

    Simple, so brokers will be aware of the competition and point out the flaws with the offer.
  • Faye | 03 Sep 2010, 02:53 AM Agree 0
    the magazine reports what is happening not promoting it. Perhaps you would rather get this news from your client? If you don't want to know what your competion is then you can just ignore the news. I prefer to be informed.
  • vittorio | 03 Sep 2010, 04:57 AM Agree 0
    I would not worry about this, actually if bmo advertise this it will help business, after all they have money to advertise and than client will come to us because I have spoken to bmo employee that do mortgage and they do not like to sell this product because of the restriction.
  • Mike | 03 Sep 2010, 06:12 AM Agree 0
    If BMO was smart in the first place, they would have properly positioned themselves alongside the other lenders, remained competitive with their rates, and they would have received their fair share of the broker business. I miss having them as a lender, but I am sure they have also miss our broker business too.
  • Robin | 04 Sep 2010, 02:10 AM Agree 0
    Banks are always going to try to compete with brokers – that’s business! Modify, position and change to stay competitive.

    BMO might come in at 3.59% with ‘no frills’; however we can come in pretty close for advertising purposes. Who are consumers going to trust when YOU tell them they don’t have prepayment privileges with BMO 3.59%, but can offer them a similar rate with 100x more flexibility? The upfront difference is like the cost of a chocolate bar per month. In the long run, that lower rate can end up costing thousands more. Keep it open, honest and transparent.

    My job is to help clients pay off the mortgages I set them up with. I don’t think BMO is doing this.
  • John | 04 Sep 2010, 04:40 AM Agree 0
    Had a client call this morning, was in BMO and they immediately started to sell them a higher priced mortgage. He wanted the reduced rate and they came back to the higher rate at least four times, so he said. He called here and I told him it was a lot like "Bait and switch" scams that retailers pull. I told him my rates we discussed the interest rate differential, he is coming in Tuesday for a variable with Home Trust.

    I think some of the posters are right, this is the best thing BMO has done for brokers since they gave up the broker channel.
  • anon | 06 Sep 2010, 04:07 AM Agree 0
    completely agree
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