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.
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