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BMO's 2.99 gamble pays off

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Mortgage Broker News | 23 May 2012, 10:00 AM Agree 0
It’s a gamble that may well have paid off, with BMO’s 2.99 per cent five-year fixed helping grow its mortgage book by $1.2 billion in the second quarter, according to the big bank’s latest financials.
  • John Dearin RPA,. AMP. | 24 May 2012, 05:11 AM Agree 0
    That's great BMO, but are you making a profit on this? And what kind of bad will is going to be generated in the next five years when people look to refinance or sell and can't. Because we know the sales staff was not giving full disclosure. $$ to donuts BMO will take a hit on this in the long run.
  • Tracie Osuala | 24 May 2012, 05:58 AM Agree 0
    The sales staff at BMO was very candid with the product. Maybe you should read up in it and then you would be aware of what you were talking about.
  • Julie Cooper | 24 May 2012, 07:58 AM Agree 0
    While sales staff at BMO may or may not have been candid about the product at signing, the fact remains that many borrowers refinance or change the mortgage in some way before the term is up. Nobody at the beginning of the term expects to refinance, move, die, divorce, etc. What BMO has set themselves up for is recouping the lower profits at 2.99% for a couple of years by charging a penalty and/or a higher rate when the borrower has no other options but to take what BMO will give them in a few year when they need an "unforseen" change. That is the unfortunate part for the borrower.
  • Johnie Banker | 25 May 2012, 02:19 AM Agree 0
    I don't believe negative comments help us enhance our image or business. All one has to do is spend 30 seconds on the BMO website to research and find out the low rate mtg , while it is considered a "no frills" mtg offer, a customer can refinace the mtg and can sell the house before the 5 yrs is up. And i don't believe the sales staff were hiding or not disclosing anything as a mtg committment would have had to be issued and the customer's lawyer would have had to review the file if a purchase ,with the customers. Rather than bash each other because we may not be able to compete on a rate issue, let's add some value to the overall customer relationship to garner more business. No one FI can always have the best rate so let's continue to offer our clients competitive rates; informative offerings; great service to grow our respective portfolios.
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