News Releases

TORONTO, ONTARIO--(Marketwire - March 15, 2012) - The Canadian housing market remains buoyant, with an unseasonably mild winter adding some further interest among buyers, according to BMO Economics. Today, the Canadian Real Estate Association reported that seasonally adjusted sales in February rose 1.4 per cent from January, and were up 8.6 per cent from year-ago levels.

"While sales remain healthy, prices are far from running wild nationally," said Doug Porter, Deputy Chief Economist, BMO Capital Markets. "Average prices rose a moderate 2.0 per cent year over year following an even milder rise in the two prior months, dampening concerns about a housing bubble."

Mr. Porter noted that just three cities have posted double-digit price increases in the past year - Toronto, Sudbury and Windsor - while Vancouver prices continue to decrease. "Most signs continue to indicate that the national market is broadly balanced and is moderating on its own accord."

"Continued moderation is a welcome sign, and it bodes well for prospective homebuyers - particularly in a low interest rate environment," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "Canadians looking to buy a home should consider a 25-year amortization as a way to significantly reduce the amount of interest paid over the life of the mortgage."

BMO offers a new 10-year maximum 25-year amortization mortgage at 3.99 per cent that is modelled after its popular 5-year mortgage at 2.99 per cent with the same maximum 25-year amortization. Both are available to new and existing customers and help customers build equity in their homes faster. Both rate offers are available until March 28^th. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and take advantage of a guaranteed rate.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $538 billion as at January 31, 2012, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.