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      News Releases

      BMO's Financial Tip of the Week: On a $400,000 Mortgage, Have a Mortgage Burning Party 5 Years Earlier and Save $70,000 by Choosing a 25 Year Amortization

      TORONTO, ONTARIO--(Marketwire - Jan. 18, 2012) - As part of BMO Financial Group's ongoing commitment to financial literacy and 'Making Money Make Sense' for Canadians, BMO is releasing a financial tip every week in 2012.

      BMO's Tip of the Week:

      Choosing a mortgage with a 25 year amortization instead of a 30 year amortization can save thousands in interest costs over the life of a mortgage.

      A 25 year amortization ensures that homeowners can pay off their debt faster, have a mortgage burning party sooner and begin taking steps to secure their retirement earlier.

      Here is an example of how choosing a 25 year instead of a 30 year amortization can save you more than $70,000:

      25 Year Amortization 30 Year Amortization
      Mortgage Value $ 400,000 $ 400,000
      Mortgage Rate* 5 per cent 5 per cent
      Bi-weekly Payment Amount $ 1,068.87 $ 980.81
      Total Interest Cost $ 297,092.55 $ 367,588.30
      * The chart above assumes an average interest rate of 5 per cent over the life of the mortgage

      "For many months, BMO has been urging Canadians to choose a 25-year amortization as a way to 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 has been a leader developing 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."

      Last week BMO Bank of Montreal lowered the rate for its 5 year low-rate 25 year amortization mortgage by 50 basis points to 2.99 per cent. This limited time offer is available only until January 25th, 2012. 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. The low-rate mortgage from BMO was named 2011 Mortgage of the Year by Canadian Mortgage Trends.

      For more information on BMO's home financing solutions, please visit: www.bmo.com/mortgages.

      BMO's Financial Tips of the Week:

      Week of January 1st: Consider investing in a Registered Retirement Savings Plan (RRSP) and take advantage of tax incentives when saving for retirement.

      Week of January 8th: Secure your retirement by opening a Registered Retirement Savings Plan (RRSP) as early as possible and contribute to it on a regular basis (regardless of the amount).

      For further information:
      Media Contacts:
      Jessica Park, Toronto
      416-867-3996
      jessica1.park@bmo.com

      Sarah Bensadoun, Montreal
      514-877-8224
      sarah.bensadoun@bmo.com

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