BMO
Bank of Montreal: 5-Year Fixed Rate Mortgage at 2.99%
This deal has expired!
If you're in the hunt for a mortgage, BMO has jumped out with a hot offer -- a 5-year fixed rate mortgage at 2.99%. That is a very low rate, and, in fact, is the lowest 5-year rate in modern Canadian history according to pundits. The deadline to apply for this special rate is January 25.
There are a couple of limitations to be aware of for this offer. Here are the details straight from BMO:
"This is a mortgage where prepayment is limited to 10+10 prepayment privileges and full repayment before maturity can only occur if the property is sold to an unrelated purchaser at fair market value. Mortgage Cash Account, Take a Break and Family Care options are not available on this mortgage."
So, you do get a great rate, but you have limited options if you ever want to pay off the mortgage early. Still, if you want security, locking in at this rate is certainly worth considering.
To do more research on mortgage rates, you can take a look at the RedFlagDeals.com mortgage rate comparison tool.
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However, pretty much an historical low rate - do you think it's going to get much lower that it will make you think "wow, should have never locked in at 2.99 for 5 years"?
Probably not.
Will the rate stick around ~ 3% for a 5 year fixed? Perhaps.
Lastly, no one knows what will happen in the next 5 years but we know what the rate is right now and it's pretty darn good.
http://www.ratesupermarket.ca/
This is a mortgage where prepayment is limited to 10+10 prepayment privileges and full repayment before maturity can only occur if the property is sold to an unrelated purchaser at fair market value. Mortgage Cash Account, Take a Break and Family Care options are not available on this mortgage.
What would the penalty be with BMO if I want to pay out before the maturity date?
With the interest rates so low now, try and negotiate!
I can even reimburse 25% per year.
Man, I guess I won't be buying a house any time soon lol because this move will jack up the price a bit, and I intend to pay cash for my house. Not good for me any way i look at it.
TD dropped their 4 year rate to 2.99%. TD offers the same early payment flexibility as its standard 5-year mortgage. Rbc dropped their 4 year rate to 2.99% too. Both offers are till Feb 29.
Is this a good time to start looking?
current rate is 5.25%
what should we do?
wait for renewal?
Call your bank NOW to negotiate, 5.29% is the posted rate for almost every bank right now on a 5 year fixed. What you may not know is that you can go in and easily negotiate at least 1%, usually up to 1.5% off that rate! If you're with the good banks (TD, CIBC) they're open today ... don't wait!
Rendez-vous is set for next week.
what you guys think?
tks