BMO Bank of Montreal: 5-Year Fixed Rate Mortgage at 2.99% Bank of Montreal: 5-Year Fixed Rate Mortgage at 2.
get this dealIf 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.
Showing 40 Most Recent Comments
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Now as 2.99% deal is over, can you guide me if I should go for it. I need mortgage for 280k.
Thanks a lot in advance guys.
What is the best deal right now ?
How do people get better than normal rates? do you have to have a certain history with the bank/ certain amount invested/ etc?
I'm new at this so I'm just trying to find out before I get a place.
Everything went through, contract has been signed last night! Yey
Premier,Advance, or regular customers?
Why the heck didn't you mention that 2.5 rate earlier???????????????????????????????????????
hsbc.ca
Was updated today to only .25 off
James
The only thing that should be regulated is that all citizens must go through financial training until they finally farting understand how money works.
It's not the bank's fault that people choose 35 year mortgages. Those things have been around forever, even 40 year amortizations, and people seemed to have had enough sense not to get them back in the day.
Another big problem is that people view their home as an investment, when really it's a required need.
Lol, I don't want to come anywhere close to that, advocating such an idea would cause the economy to collapse. I just think a commercial bank should have a greater invested interest in its members than it does in its shareholders. If that were to happen and people were to live within their means we wouldn't have to deal with the huge fluctuations in the business cycle and we would all be better off as a result.
James
Hey, did you know back in the day, in the USA, people used to pay for houses with cash? How about we bring that back?
How far do you want to go?
People over estimated the value of houses, how isn't that screwing up? Then the government allowed speculators to drive up the price. How isn't that screwing up? A correction normally happens when the government intervenes early in a bubble that shouldn't have existed in the first place, so again a screw up in policy. I also don't see how sellers win in such situations either, considering most people buy houses to live in them rather than an investment (most, but not all). There are no winners in a housing correction or collapse, which is why it baffles me that the government doesn't try to regulated it closer. If people were required to make a 30% downpayment, only had 20-25 year amortization periods and people weren't able to refinance short of some sort of emergency we wouldn't find ourselves in this mess. Most people will disagree, but I think commercial banking (not investment banking) should be nationalized or run by credit unions. Commercial banks that lend money for profit only distort the economy, lending to more extreme highs and lows in the business cycle.
James
James
how do u get that rate?
My brother went to RBC yesterday and they were still offering him the 4yr, 2.99% fixed
they may have stopped advertising it, but it still seems to be offered
HSBC is offering .5 below prime for 2.5 5 year fixed and a 500 dollar credit towards transfer fees.
"Canada’s mortgage party has come to an abrupt halt. The bonanza of dirt-cheap mortgages offered by some of the country’s biggest lenders in recent weeks has been shut down sooner than expected, as banks pull their offers in the face of higher funding costs and concerns over dwindling profit margins. On Wednesday, Toronto-Dominion Bank pulled discount mortgage rates that were supposed to be available until the end of the month. Royal Bank of Canada did the same on Tuesday. "
You don't necessarily need to go to a smaller credit union to get a better rate - I got my rate with BMO by asking them to beat another institution.
And 2k328ci's made a good point earlier: if you switch institutions there will still be some kind of administrative fee involved to discharge your mortgage even though you're on an open term. For me it was ~$300, but that's peanuts compared to what you'll save if you get a better rate.
With any luck you won't need to switch anyway if RBC is willing to drop your rate.
I wouldn't blame it all on the Realtors:
You have:
1) Realtor's who fundamentally believe that all the time is the perfect time to buy.
2) Banks who will let you mortgage alot based on your income
3) People being bad with money. Sure the bank will give you a big mortgage. Are you taking into consideration how long it will take to pay it off. How much disposable income will you be left with? Will the mortgage use up all your disposable income up to retirement? Are you leaving enough room to save for retirement?. I put the blame on people just as much as realtor's/banks. I don't think people ask themselves these questions. They get huge mortgages that put them into extremely tight budgets.
I take it you're only taking data since 2000 into consideration... In the 1990s housing was flat and in the 1980 it went through a correction. Based on the information we have today, its clear that housing has come near or is at a peak and anything gained now will be lost shortly. Our consumer debt/disposable income ratio is now higher than ever, in fact its now worse than the Americans. It'll only take an increase of a few percent and the house of cards will tumble - granted I doubt that'll happen till the economy improves in a few years. In the meantime, I'm willing to bet that the government will reduce insurable amortization periods to 25 years and possibly increase the required downpayment which will cause the housing market to flatten. You don't need to be a rocket scientist to know that the gains we've been seeing in the housing market since 2004ish are unsustainable - especially when you have real estate speculators pouring in. With that said, you generally are best not to wait to buy a house because of inflation and rent, unless you're able to live in your parents basement free of charge for 10 years I suppose (who wants to do that?).
James
is it mentioned somewhere on their website ?
LOL.
500K * (1.10 ^ 10) = 1297K.
Yup. Your house will be worth 2.6 times more in ten years.
Considering the fact that houses historically have increased in value 10% per year (depends what city you are in) it's better to not wait.
Nope. If you're into a fixed mortgage, your bank may charge you an "interest rate differential". Check your mortgage agreement to be sure, but even then, different branches may calculate it differently.
http://www.canadianmortgagetrends.com/c ... l-ird.html
I was always under the impression that its 3 months of ur total interest payment. I have a mortgage with a company that is offering me only 4.65% on 7yr fixed rate, and they are not willing to go any lower. I'm really thinking about switching to a different bank. The penalty fees they are quoting me is around $4400. My mortgage is only $86000 remaining. I just can't figure out how they're getting $4400 in penalty fees. Does this sound rite.
A 5yr fixed rate is just a bit lower. Around 4.35%
Just hoping if someone can guide me into making a decision.
Thanks very much.
You can request an "appeal" for reduction. My TD HELOC was prime +1%, but after the appeal (since the other banks are offering +.5%) they finally gave me prime + 0.5% (they initially gave me +0.75%). And I thought banks don't haggle?!
Engineers get prime plus 0% at NBC.
RBC is also prime + 0.5.
Signing at 2,80% / 4 years fixed
I will keep you posted!
btw: should I get an All-in-one banking (home equity line of credit)
or a regular mortgage.
I am going into rbc today, i will see what they say. Personally i feel safer being with a "bigger" bank than a smaller credit union. I dont have much knowledge/experience in mortgages.
http://www.truenorthmortgage.ca/
If you're currently on an open mortgage you can easily pick up and move your mortgage with no penalty, so you should be able to negotiate better than the posted rates with the RBC (or elsewhere if RBC doesn't want to play ball).
I recently got Prime - 0.85 (closed, 5 year, 20/20 privileges) with BMO because I was still had the last 2 years open on my previous term with MCAP (Prime - .7, 3 years closed 2 open, 20/20 privileges). Called up MCAP to see if they could lower my rate, then went into my BMO branch to see if they could do better.
Should I wait until renewal?
Is it perhaps better to break it and sign the new one right now (penalty fees are about 5500) ?
I called my current bank and spoke with TD representative and blending rate what they offer is 3.33 for 4 year fixed and 3.56 for 5 year.
Any valuable ideas or advices will be greatly appreciated!
Thanks.