An article that properly advises as to what the new BMO rate is really all about. It is important to find out what is built into you mortgage to ensure not only do you get the best rate but the best deal as well.

BMO drops five-year fixed "low frills" rate

| Thursday, 2 September 2010

BMO dropped its five-year fixed "low frills" rate yet again from 3.79 per cent to 3.59 per cent.
The bank says this deal "saves homeowners over $60,000 in interest costs compared to leading competitors' five-year special fixed rate at 3.89 per cent and 35-year amortization."
CanadianMortgageTrends.com notes the following to keep the rate in perspective:
- Most people break their five-year terms early, and you can't break BMO's mortgage to go somewhere else. Plus, pre-payments are limited to 10 per cent a year.
- Various competitors can match or beat 3.59 per cent on a five-year term.
- A five-year term at 3.59 per cent may not be the lowest cost option. A mortgage broker can present clients with other alternatives.