The 5 year fixed rate has hit it’s all time historic low at 2.99% but keep in mind that a mortgage is more than just a rate. BMO’s promotional 2.99% 5 year rate comes with its catches so dig a bit deeper to understand the terms. The maximum amortization is 25 years not 30 so you will have a higher payment (paying less interest). There are lower prepayment options at 10% and you can’t break the mortgage within the 5 year term without a bonafide sale OR you have to stay with BMO to refinance (reduces your choice). This promotional rate is on until January 25th only.
Regardless of the terms this was a great opportunity to give a kick in the pants to the other lenders to provide lower rates for consumers. Many lenders came out with lower rates on their 3, 4, 7 and 10 year rates. As for the 5 year rate, we currently have the 2.99% which competes heavily with BMO, has less restrictions and double the prepayments – fantastic! The 2.99% for 5 years fixed is for a 60 day rate hold…doesn’t expire next week like BMO, has a 30 year amortization and has all the bells and whistles you would want in a mortgage offering with the lowest rate on the market. Bond yields have been low for months and we are very happy to see that the rates are dropping to reflect these low yields – we are thrilled to pass these savings onto our clients.
To view the video from CTV National News with Kim Gibbons please click here…
Please take a look at our current rates and give us a call today if we can help.
Kim Gibbons, ” Your Mortgage Superhero ®”
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