BMO backtrack to 3.09 “smoke and mirrors”

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BMO’s move to withdraw its 2.99 posted rate is no more than “smoke and mirrors,” says one Ottawa mortgage broker, suggesting the bank will continue to offer even lower rates at the branch level.

“I can still walk into a bank and get 2.89,” says Jeff Cody, with MCC Mortgage Brokers City. “The move back to 3.09 is just a lot of smoke and mirrors.”

BMO has apparently bent to Jim Flaherty’s will and announced it is backing off its 2.99 per cent posted rate for that five-year no-friller mortgage, returning it to 3.09 per cent at the end of the week.

“Our advice to Canadians is simple: Protect yourself from rising rates by locking in for five years and become mortgage-free faster by choosing a maximum amortization of 25 years,” said Ernie Johannson, senior VP of Personal Banking Canada with BMO, in a statement issued to the press. “This mortgage is the responsible choice for the times.”

Although Cody doesn’t deal with BMO, he does do a lot of business with Manulife.

“Is BMO raising the rate to please Flaherty? Absolutely,” says Cody, who cited Manulife’s decision to go back on their own rate after a phone call from the finance minister’s office.

Last week Manulife Bank announced it was cutting its five-year fixed rate to 2.89 per cent, but changed course one day later – bringing it back up to 3.09 per cent – after receiving a call from an official in Mr. Flaherty’s office.

But for Cody, the best rate for the customer starts and finishes with the mortgage broker.

“Let us do the shopping for you; we’ll get you the best deal out there,” he told

  • Welbanks on 2013-03-27 8:48:54 AM

    I'm not sure why we give publicity to this kind of nonsense. Any broker remotely on top of their business knows the rates are out there, and lower, so why give attention to lenders that don't support the channel?

  • Z.M. Padar MortgagePRO on 2013-03-27 9:58:06 AM

    SOme brokers have too much time on their hand to "air" their opinion about everything. These blabbermouths are not helping the relationship between lenders and brokers. If you have issue with any lenders rate and or promotion of rates, take it up with them in private. Time to act like a professional and serve your client instead criticizing lenders. These are the reasons many do not want to subscribe to MortgageBRoker news, as reading these comments are just gibberish...

  • Ron Butler on 2013-03-27 11:14:34 AM

    Mr. Pader, this publication provides useful news day in and day out. Jeff Cody is very effectively presenting his thoughts from the background of the largest volume mortgage brokerage in Canada at very close to a billion dollars of funding, I think he has earned his right to an opinion. It makes no sense to attack the concept of commenting on mortgage matters. Everyone is entitled to their opinion and by all measures Jeff is likely highly entitled. Based on your own post, I don't know if you really want to dip your toe in the gibberish pool.

  • Rob Murphy on 2013-03-28 11:27:01 AM

    I find it amusing that Zoltan Padar, the guy who sends me spam weekly about all of his great "private lending" offers would even have the nerve to comment in this forum. Are you even part of the "A" lending pool where 2.89% is possible Zoltan? Jeff Cody is an established and respected veteran in our industry. Commentary about Mr. Flaherty and his activities within our industry is both helpful and insightful as it keeps communication active and open and keeps transparency (even though sometimes redundant) front and center. Which in turn assists the industry which will in turn assist the consumer. I had time for this article - but not time for your off side comment- or your tiresome email spamming. Please reconsider your words and your activities. Our industry needs more Jeff Cody's.

  • Z.M. Padar MortgagePRO on 2013-03-28 11:41:25 AM

    Mr. Murphy,
    I apologize for the spams, perhaps you can provide me your email address to remove it from our database, as it is clear you do not like our "spam" Thank you very much and again I am sorry I have aired MY opinion.

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