News Releases

TORONTO, ONTARIO--(Marketwire - March 28, 2012) - BMO Bank of Montreal announced today it is changing its residential mortgage rates, effective March 29, 2012.

The new rates are:

The interest rate for a fixed rate mortgage is calculated half-yearly not in advance.

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 Offers may be withdrawn or extended without notice.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.

"At BMO, we believe a 5-year or 10-year fixed rate mortgage which allows customers to lock-in low rates for a longer period of time aligns with our ongoing efforts to help Canadians shield themselves against interest rate hikes," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "Our 5 and 10 year maximum 25-year amortization mortgages help Canadians save on interest costs over the long term and build equity in their home sooner."

According to a new report from Doug Porter, Deputy Chief Economist, BMO Capital Markets, financial stability for Canadian homeowners in the coming years will be supported by locking-in to fixed rates and opting for shortened amortization periods.

"Our interest rate outlook now projects that fixed mortgage rates will trump variable. While the decision ultimately depends on the individual, the low rate combined with a shorter 25-year amortization will significantly strengthen household financial stability," said Mr. Porter. "For those who are without financial flexibility and would run into difficulty from a pronounced upswing in interest rates, it makes even more sense to lock in for the protection of household finances."

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.

Web: www.bmo.com

Twitter: @BMOmedia