Borrowers beware

The 2.99% BMO five-year mortgage isn’t quite as good as it sounds.

BMO’s recent move to bring its rate below the psychologically significant 3% mark for fixed-rate five-year mortgages is being treated as a big deal because a similar move a year ago provoked then Finance Minister Jim Flaherty to admonish the bank. Joe Oliver, Flaherty’s successor, is taking a more laissez-faire attitude.

What BMO is offering until April 17th is a competitive rate in a mortgage with uncompetitive terms. Most important, you can’t break this mortgage before it comes up for renewal in five years unless you sell the property, refinance with BMO or do an early renewal into another BMO product. All the usual prepayment penalties would apply in these situations.

No Surprise every lender is out there to create a buzz. The Angela Calla Mortgage Team will get you the best mortgage that will save you the most amount of money over the term for the lowest cost of home ownership. Contact us at callateam@dominionlending.ca 604-802-3983