News Releases

BMO Launches New Variable Rate MortgageBMO Offers Attractive Lending Rate: 3.8% with Option to Lock in at Any Time

TORONTO, February 10, 2009 – BMO Bank of Montreal announced today a new 5-Year Variable Rate Closed mortgage product that allows customers to take advantage of record-low lending rates with the flexibility to lock into a fixed-rate closed mortgage at any time.

“Recently we've seen an increase in the number of customers choosing a variable rate mortgage”, said Lynne Kilpatrick, Senior Vice President BMO Bank of Montreal. “At 3.8% our new 5-Year Variable Rate Closed mortgage offers a very competitive rate yet gives our customers the peace of mind of knowing they can lock in at anytime should rates rise.

"We want to make buying a home easier and help you pay off your mortgage faster. Our mortgage experts are here to help you make sense of the home-buying process and choose the right mortgage with confidence”, added Kilpatrick.

Five Tips for Managing Your Mortgage

1. When you get Paid, Pay your Mortgage

Most people are paid every two weeks. Consider aligning your mortgage payment with your paycheque - you'll be amazed how much you can save in interest over the life of the mortgage.
Traditionally mortgage payments are made every month.
With more frequent and accelerated payments, you'll pay your mortgage down faster, saving you interest costs over the long term.

2. Take Advantage of Pre-Payment Options

Increase monthly payments and/or make lump sum payments using 20 20 Prepayment options every year to become mortgage-free faster. With the first “20” you can prepay up to 20% of the original mortgage amount each calendar year in minimum amounts of $100 as many times as you wish during the year. With the second “20” you can increase your mortgage payment (principal and interest) by up to 20%, once each calendar year.

3. Skip payments if necessary

Skip up to one month of mortgage payments in a calendar year for any reason with the Take A Break option.
BMO's Family Care option frees up cash to help when a newborn arrives or you are caring for an ailing family member by letting you skip up to four months of mortgage payments.

4. Assure your family's financial security

Mortgage Life Insurance and Accident & Illness Protection Insurance are available to protect your family when you need it most.
Mortgage Life Insurance will cover the balance of your mortgage — up to a maximum of $600,000.
Accident & Illness Protection will provide a maximum of $3,000 per insured person per month.

5. Build a rainy day borrowing reserve

When you take advantage of your prepayment privileges, you automatically start to build a borrowing reserve called a Mortgage Cash Account. As this reserve grows, you can re-borrow these funds at any time, for any reason, in amounts starting from $2,500 without the inconvenience of a new mortgage application.

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