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Financial Literacy Month-BMO's Tip of the Day: Choose a Shorter Amortization

TORONTO, ONTARIO--(Marketwire - Nov. 2, 2011) - BMO Bank of Montreal is releasing a series of financial tips throughout November to celebrate Financial Literacy Month in Canada. As part of Making Money Make Sense and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day to day finances more effectively.

BMO's Tip of the Day: Become mortgage-free faster by choosing a shorter amortization.

  • For example, on a $250,000 mortgage at a 6 per cent interest rate, moving from a 30 year to a 25 year amortization can save upwards of $55,000 in interest, which can be put directly towards your retirement
  • BMO's Low-Rate Mortgage offers a five year fixed rate of 3.69 per cent

"BMO has developed products, such as the low rate mortgage with a maximum 25-year amortization, that we believe are directly relevant to today's environment and specifically designed to help Canadian consumers manage their debt. The lower amortization can significantly reduce the amount of interest paid over the life of the mortgage," said Katie Archdekin, head of Mortgage Products, BMO Bank of Montreal.

BMO Financial Literacy Month Tips

November 1: Pay more than the minimum payment on a credit card balance.

For more on financial literacy, BMO encourages Canadians to visit http://www.financialliteracymonth.ca/ and http://www.bmo.com/home/about/banking/corporate-responsibility/customers/financial-literacy.

For further information:
Matthew Duffin, Toronto
416-867-3996
matthew.duffin@bmo.com

Sarah Bensadoun, Montreal
514-877-1101
sarah.bensadoun@bmo.com

Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com