Business & Finance
Business and Finance
Business and Finance
Fri, July 9, 2010 BMO Decreases Mortgage Rates, Including Five Year Low-Rate Mortgage
TORONTO, ONTARIO--(Marketwire - July 9, 2010) - BMO Bank of Montreal (TSX:BMO)(NYSE:BMO) announced today that effective July 10, 2010, its five year low-rate fixed mortgage rate will be lowered from 4.15 per cent to 3.99 per cent, continuing to make it the lowest rate in the market. The move comes on the same day housing starts were reported down for the month of June, showing Canada's housing market is cooling off.
"Housing starts for June dropping by 3.1 per cent shows the housing market is continuing to cool, and affordability is on the rise," said Michael Gregory, Senior Economist, BMO Capital Markets. "Lower mortgage rates will provide even more opportunities for home buyers over the next few months."
BMO's new rate, combined with the Bank's other mortgage reductions in the past two weeks, is aimed at helping prospective home owners who are looking for more affordability following a busy spring season with higher home prices.
"The decision to drop the rate on our popular five year low-rate mortgage helps those buyers looking to take advantage of a cooling housing market" said Martin Nel, Vice-President Lending and Investment Products, BMO Bank of Montreal. "Now is a good time to get pre-approved and have 90 days to search for the home that best suits your needs and in a price range that is affordable."
BMO also announced that it was lowering rates on its 7 and 10 year fixed rate mortgages.
| The new rates are: |
| Special Offers* |
| To: | Change: | |
| 4 year fixed closed | 4.29% | N/C |
| 5 year low rate fixed closed | 3.99% | -0.16% |
| 5 year fixed closed | 4.39% | N/C |
| 7 year fixed closed | 5.15% | -0.05% |
| 10 year fixed closed | 5.25% | -0.10% |
| Fixed Rates: | To: | Change: |
| 6 month fixed convertible | 4.75% | N/C |
| 6 month fixed open | 6.45% | N/C |
| 1 year fixed open | 6.45% | N/C |
| 1 year fixed closed | 3.50% | N/C |
| 2 year fixed closed | 3.85% | N/C |
| 3 year fixed closed | 4.40% | N/C |
| 4 year fixed closed | 5.44% | N/C |
| 5 year low rate fixed closed | 5.79% | N/C |
| 5 year fixed closed | 5.79% | N/C |
| 6 year fixed closed | 6.10% | N/C |
| 7 year fixed closed | 6.70% | -0.05% |
| 10 year fixed closed | 6.80% | -0.10% |
The interest rate for a fixed rate mortgage is calculated half-yearly not in advance.
*These special discounted rates are not the posted rates of BMO Bank of Montreal. Rates are subject to change without notice. Offers may be withdrawn or extended without notice. Mortgage funds must be advanced within 90 days of the application.
