BMO went National last night with their offer of a 5 year FIXED 2.99%. The lowest on record for the first quarter of 2014.
People are raging of a modern “mortgage war”. However, will other chartered banks come down to BMO’s level of offerings? I say no, and here is why:

You will see below a quick comparison of TD and BMO as to what they offer in a 5 year fixed package. Please remember, I love and I hate all banks, so I am not endorsing TD nor BMO with this information:


In other words, this is what BMO “no frills” mortgage struggles with:

  • Max 25 year amortization
  • Regular payments can only be increased by 10%
  • You will need to sell you house if you want to discharge inside of term
  • No Payment/Vacation Breaks

2.99% is a great rate.  But when BMO says fixed they mean FIXED. So you better be ready to commit to them for the next 5 years.  The penalty to get out of this mortgage term would be atrocious.  This rate BMO is offering is a prime example of how offering the lowest rate does not mean you are getting the best deal.