News Releases
In its ongoing efforts to meet consumer demand for even more affordable home financing options, BMO Bank of Montreal has again lowered a key mortgage rate. The Bank is now offering its three year variable rate mortgage at 3.4 per cent, a discount of 85 basis points below the current prime rate of 4.25 per cent.
“As the spring home-buying season continues to pick up steam, this aggressive new low rate offer sends a strong message to both new buyers and existing home owners,” said Maria Racanelli, Vice President Personal Banking, BMO Bank of Montreal. “Whether you’re attracted to the peace of mind of a fixed term mortgage or want to take advantage of record low rates with a variable rate mortgage, BMO Bank of Montreal has you covered.”
The new discounted three year variable rate mortgage is available until June 30, 2005, and gives customers the option of locking in at anytime.
The promotion follows on the heels of BMO’s announcement in April that it had dropped its seven year fixed mortgage rate to below the three year fixed rate. BMO Bank of Montreal’s seven year posted rate is currently 5.05 per cent, 29 basis points below the three year fixed rate.
“While securing a great interest rate on your mortgage is important, it’s only part of the equation,” noted Ms. Racanelli. “Mortgage customers should ensure they meet with a qualified financial expert to develop a comprehensive strategy that integrates their current mortgage requirements with all of their other personal and financial plans.”
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Fixed Rates: |
|
|
6 month open |
7.05% |
|
6 month convertible |
4.75% |
|
1 year open |
6.95% |
|
1 year closed |
4.55% |
|
2 year |
4.90% |
|
3 year |
5.34% |
|
4 year |
5.64% |
|
5 year |
5.79% |
|
6 year |
6.25% |
|
7 year |
5.05% |
|
10 year |
7.45% |
|
18 year open |
8.55% |
(The interest on fixed rate mortgages compounds semi-annually, not in advance.)
Variable rates are as follows:
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Variable Rates: |
|
|
3 year open |
4.25% |
|
6 year Below Prime |
3.875% |
|
5 year Protected |
4.150% |
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Special Promotional Rates: |
|
|
3 year open variable* |
3.40% |
|
7 year fixed |
5.05% |
*The Annual Percentage Rate (APR) for the 3-year Open Variable Rate mortgage is 3.4% for a mortgage of $100,000, which has a 25-year amortization and is based on Bank of Montreal’s prime rate of 4.25%, as of April 15, 2005, less 0.85%. This discount is available for applications approved by June 30, 2005, and funded by September 30, 2005. Prime rate is subject to change without notice. APR assumes no fee(s) apply.
Rates as of April 20, 2005
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