News Releases
BMO Bank of Montreal has kicked off the 2005 mortgage season by dramatically lowering the rate on its seven-year fixed-rate mortgage to capture a greater share of the estimated $600 billion mortgage market.
Effective today, BMO has dropped the fixed rate for its seven-year mortgage by 160 basis points to 5.4 per cent. The current posted fixed rate for a three-year mortgage is 5.49 per cent.
“Spring is traditionally the most active time for new home buyers with 40 per cent of annual home purchases historically taking place during the next four months,” said Maria Racanelli, Vice President, Personal Banking, BMO Bank of Montreal. “With this offer, BMO Bank of Montreal can give our customers the comfort and security of a locked-in long-term mortgage and the lower-rate savings of a shorter term.”
BMO Bank of Montreal will be offering a low seven-year fixed-rate mortgage to its customers until June 30, 2005. The special rate will also be available on BMO’s Homeowner ReadiLine line of credit.
Although a recent BMO survey found that 70 per cent of homeowners hold a fixed rate mortgage, BMO noted the popularity of variable rate products continues to grow. For homeowners who prefer a variable rate product, BMO Bank of Montreal offers a 6 Year Flexible Below Prime mortgage with an annual percentage rate of 3.80*(2) -- among the lowest of the banks.
“The signal we get from the Bank of Canada announcement this morning is that lending rates are likely to remain flat until late this year, after which we can probably expect to see some upward pressure,” said Racanelli. “That’s good news for new home buyers and renewing mortgage holders who face imminent decisions about choosing the right mortgage term.”
Current posted Mortgage Rates available at BMO Bank of Montreal are as follows*:
|
Fixed Rates: |
|
|
|
|
6 month open |
7.05% |
4 year |
5.79% |
|
6 month convertible |
4.85% |
5 year |
5.99% |
|
1 year open |
6.95% |
6 year |
6.45% |
|
1 year closed |
4.70% |
7 year |
5.40% |
|
2 year |
5.00% |
10 year |
7.65% |
|
3 year |
5.49% |
18 year open |
8.55% |
Variable rates are as follows:
|
Variable Rates: |
|
|
3 year open |
4.250% *(1) |
|
6 year Below Prime |
3.875% *(2) |
|
5 year Protected |
4.150% *(1) |
*Rates subject to change without notice
*(1) Annual Percentage Rate (APR) is for a mortgage of $100,000 with monthly payments and a 25-year amortization. APR assumes no fee(s) apply. If we require you to obtain an appraisal, the appraisal fee would increase your APR. The APR for the 5-year (protected) is based on the rate of 0.10% below Prime. Bank of Montreal's Prime Rate is 4.25% as of October 20, 2004, which is subject to change without notice.
*(2) The APR for the 6-year (flexible below prime) is 3.797% and is based on a low introductory rate of 2.25% below Prime for the first 3 months and 0.375% below Prime for the remainder of the term. Bank of Montreal's Prime Rate is 4.25% as of October 20, 2004, which is subject to change without notice.
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