Bank of Montreal (BMO) is currently offering a 2.99% percent, 5 year fixed mortgage rate. This is a good rate no matter how you look at it, with or without its restriction. Keep in mind, this is only available to fully qualifying clients. Those who qualify for this lower interest rate, in the long run, will be saving a lot of money.
Competing on Rock Bottom Mortgage Rates
BMO was the first to offer the 2.99% rate, this caused the other banks to match this low rate. This is good for the market, as healthy competition is flourishing. However, the Department of Finance has warned banks from offering rock bottom rates because this will encourage clients to buy more without the sufficient funds.
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How Long Will These Low Rates Last?
Back in May, Finance Minister Jim Flaherty told the Globe & Mail that aggressive rate sales were ‘something we discouraged.’ He said he told the banks, ‘My expectation is that you will not compete to the bottom on interest rates.’ Doing so could over-stoke the national debt fire, suggests the Department of Finance” (McLister, CanadianMortgageTrends.com).
More Than Just Low Interest Rates
At Mortgage Forces, we don’t just emphasize low rates, we dedicate ourselves in helping the military and DND personnel find the best solution for their mortgage. Our main focus is getting the clients what they need so they can save more money on their mortgage. No matter a client’s preference or needs, we ensure that the client saves money and is satisfied.