Archives for March 2013

BMO to raise back up controversial Mortgage Rates

The Bank of Montreal will return the posted rate for a fixed five-year mortgage back to 3.09%, where it was before they lowered it to 2.99 per cent.  Financial Minister Jim Flaherty had expressed his disapproval over the lowered rate which was offered as of March 4th.

Manulife also reversed its decision to offer a lower rate last week after they received a call from Flaherty asking them to reconsider.

There are however lots of lenders still offering  5 year fixed mortgages below 3% at this time, if you are looking for a new mortgage or would like more information please feel free to give me a call and I can answer any questions you may have.

 

Attention Buyers – BMO Mortgage Rate Cut May Spark Price War

The Bank of Montreal recently cut its five-year fixed mortgage rate to 2.99 per cent as we head into the important spring housing market.  BMO is lowering the rate on its five-year fixed low-rate mortgage to 2.99 per cent from 3.09 per cent on a loan with an amortization period of 25 years.

Other banks have yet to follow suit on their posted rates but already buyers are reporting negotiating rates below 3% with other institutions.

This is not the first time BMO has made this move; last year it also lowered its rate for the spring market, but only for a short time.  When it made the move last year other banks were quick to introduce competitive products. It is unknown how long BMO’s current offer will be offered.

It’s subject to withdrawal. We’re not announcing how long it will be out in the market.

Sameh Elrefaei, BMO’s head of mortgage products

The lower rates are likely being offered to remain competitive in a shrinking housing market  after the government introduced tougher mortgage rules last year.

If you are thinking of renewing your mortgage or are interested in purchasing to take advantage of these low rates I would be happy to assist you.  Fill out the short form below today and I can arrange a free, no obligation consultation for any of your mortgage needs.

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