BMO drops five-year fixed "low frills" rate

BMO drops five-year fixed "low frills" rate

BMO dropped its five-year fixed "low frills" rate yet again from 3.79 per cent to 3.59 per cent.

The bank says this deal "saves homeowners over $60,000 in interest costs compared to leading competitors' five-year special fixed rate at 3.89 per cent and 35-year amortization."

CanadianMortgageTrends.com notes the following to keep the rate in perspective:

- Most people break their five-year terms early, and you can't break BMO's mortgage to go somewhere else. Plus, pre-payments are limited to 10 per cent a year.
- Various competitors can match or beat 3.59 per cent on a five-year term.
- A five-year term at 3.59 per cent may not be the lowest cost option. A mortgage broker can present clients with other alternatives.

9 Comments
  • Annon 2010-09-03 2:26:24 AM
    Can someone please explain why this magazine keeps promoting a bank that turned their back on the Independant Mortgage Broker community tears ago.
    Post a reply
  • MortgageMazeYYC 2010-09-03 2:28:46 AM
    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.
    Post a reply
  • John 2010-09-03 2:34:42 AM
    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.
    Post a reply