News Releases
BMO decreases five-year mortgage rates by 10 bps
- BMO Eco Smart Mortgage designed to encourage Canadians to choose energy efficient homes
- Lower five-year mortgage rates come amid busy spring home buying season
TORONTO, March 23, 2011 – With Earth Hour fast approaching, BMO announced today it is decreasing its new BMO Eco Smart Mortgage and other popular five-year mortgage product rates by 10 bps effective March 24, 2011. The move comes ahead of the busy spring buying season.
The BMO Eco Smart Mortgage is designed to encourage and reward Canadian homeowners looking to reduce their energy usage and save on home expenses. People whose homes meet BMO's energy efficiency criteria will qualify for a special five-year fixed rate of 3.79 per cent and benefit from all the features of a regular five-year fixed rate mortgage. A typical customer with a $300,000 mortgage amortized over 30 years would save thousands of dollars over the five years on a BMO Eco Smart Mortgage.
“With Canadians from coast-to-coast turning their lights off for Earth Hour on Saturday, March 26, energy efficiency is top of mind, especially when it comes to their homes,” said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. “Whether it is choosing energy efficient homes or lower amortization periods, we want to reward customers for making responsible borrowing decisions; our highly competitive rates and specialized mortgage products reflect that.”
Archdekin added that BMO's popular low-rate mortgage – with a maximum 25 year amortization and a five-year fixed rate of 3.79 per cent – allows Canadians to pay off their mortgage faster and save thousands of dollars on interest payments.
Furthermore, BMO is advising people looking to buy or sell their home during the busy spring buying season to guarantee their mortgage rate by getting pre-approved ahead of time.
“Getting pre-approved on your mortgage is a smart move this time of year, as it allows you to shop with confidence knowing your financing is lined up and secures your rate for up to 90 days,” said Archdekin.
The BMO Eco Smart Mortgage and low-rate mortgage decrease 10 bps to 3.79 per cent, while the BMO five-year fixed closed drops 10 bps to 4.09 per cent.
BMO Eco Smart Mortgage
A BMO survey shows that the majority of homeowners (51 per cent) cite utility costs as the biggest surprise financially when it comes to owning a home. Reducing energy usage is one way Canadians can significantly cut back the cost of running a home. To qualify for the BMO Eco Smart Mortgage, customers visit a BMO branch or speak with a BMO mortgage specialist who can determine their individual needs and arrange for an authorized appraiser to determine if the home they own or are planning to buy meets specific, energy-saving requirements.
If the home qualifies, the customer will be automatically eligible for a 3.79 per cent mortgage rate from BMO. For more information, please visit www.bmo.com/ecosmart.
The new rates are:
Special Offers* |
To: | Change: |
|---|---|---|
| 5 year Eco Smart fixed closed TM | 3.79%
|
-0.10%
|
| 5 year fixed closed | 4.09%
|
-0.10%
|
Fixed Rates: |
To: | Change: |
|---|---|---|
| 5 year low rate fixed closed | 3.79%
|
-0.10%
|
| 5 year fixed closed | 5.34%
|
N/C |
| 5 year Eco Smart fixed closed TM | 5.34% |
N/C |
The interest rate for a fixed rate mortgage is calculated half-yearly not in advance.
*These special discounted rates are not the posted rates of BMO Bank of Montreal. Rates are subject to change without notice. Offers may be withdrawn or extended without notice. Mortgage funds must be advanced within 90 days of the application.
™ Trade-mark of Bank of Montreal.
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For More Information:
Matt Duffin, Toronto, matthew.duffin@bmo.com,
416-867-5394
Sarah
Bensadoun,
Montreal, sarah.bensadoun@bmo.com,
(514) 877-8224
Laurie
Grant, Vancouver, laurie.grant@bmo.com,
(604) 665-7596