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.