News Releases

TORONTO, June 1, 2010- BMO Bank of Montreal announced today it has lowered its five year low-rate fixed mortgage to 4.25 per cent effective June 2, 2010. Since being introduced earlier this year, BMO's low-rate mortgage has remained the best in the market. This new rate widens the gap and reiterates the bank's commitment to helping customers become mortgage free sooner.

"Today's Bank of Canada announcement might leave some homebuyers believing they're too late to take advantage of historically low mortgage rates," said Jane Yuen, Senior Manager of Mortgages, BMO Bank of Montreal. "Our decision to lower the rate on our popular five year low-rate mortgage means those buyers who have been patient and careful not to over extend themselves in bidding wars this spring, can still be rewarded by taking advantage of our market leading five year low-rate mortgage."

For homebuyers looking for cost certainty now is a great opportunity to get pre-approved and locked in at 4.25 per cent. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and take advantage of a guaranteed low rate that won't be around forever.

"While short-term interest rates are not expected to rise rapidly, they are expected to increase about three percentage points by the end of next year," said Sal Guatieri, Senior Economist, BMO Capital Markets.

For many home buyers with young families, June typically represents the last month to purchase a home before the beginning of the school year. Another looming deadline weighing on would-be buyers and sellers in Ontario and British Columbia is the introduction of the Harmonized Sales Tax (HST).

"We recognize there's a sense of urgency among home buyers," added Yuen. "The key when looking to buy a home is to have a clear understanding of your financial situation - what you can afford today and in the near future, as rates and associated homeownership costs increase."

Talk to a BMO Mortgage Specialist about getting pre-approved. Benefits include:

• Guaranteed financing which will be helpful when you make an offer on a house.
• Knowing how much you can borrow, and what your monthly payments will be.
• Guaranteed rate during your 90-day pre-approval period.

"While there are many ways of getting a mortgage, the key is to make sure you're getting the right advice. It starts by talking to your banker and understanding how your mortgage fits into your overall financial goals," added Yuen.