BMO moved the five year fixed mortgage rate to 2.99%, a massive 50 basis point cut from 3.49%. BMO has a history of starting the spring rate wars and took heavy criticism in past years from former Finance Minister Jim Flaherty. New Finance Minister Joe Oliver warned Thursday that he is monitoring the mortgage market closely so we will see how he chooses to handle this.
The 5 year fixed mortgage rate offered by BMO comes with strings attached. Full repayment before maturity can ONLY be made if your property is sold to an unrelated purchaser at fair market value or if the mortgage is renewed or refinanced into another BMO mortgage product. Essentially BMO is locking you in for 5 years with no way out unless you sell the home. Pre-payment privileges are also limited to increasing your regular payment by 10% and making a lump-sum payment of 10% each year.
LowestRateCanada.com is offering a 5 year fixed rate at 2.99% with no strings attached, full pre-payment privileges of 20% increased payments and 20% lump sums annually. You can also refinance this product with another lender without being forced to sell your home. Rate is not always everything when you are mortgage shopping, always read the fine print and talk to a mortgage broker to help you compare rates and products.
For more information on the 5 year fixed mortgage rate specials please contact us today!
