BMO offers new mortgage with a maximum 25-year amortization-"Canadians can have their mortgage-burning party a decade sooner"
TORONTO, March 2 /CNW/ - BMO Bank of Montreal today announced it is making it easier for Canadians to be mortgage-free faster with the introduction of the new BMO five-year fixed rate mortgage. BMO also released results from a new Harris/Decima survey that shows Canadians are keen to shorten the amortization period of their mortgage to reduce interest costs.
The new mortgage:
- Offers the lowest fixed rate for a five-year closed term at 3.75 per
- Allows customers to repay their mortgage faster with a maximum 25-
year or less amortization
- Saves homeowners over $67,000 in interest costs compared to leading
competitors' five-year special fixed rate at 4.09 per cent and 35-
year amortization (based on a $200,000 mortgage)
"Customers have told us that they want to become mortgage-free faster, pay less in total interest and have the comfort of a fixed interest rate but, above all, they want an easy-to-understand, straightforward product," said Frank Techar, President and CEO, Personal & Commercial Banking Canada, BMO Financial Group. "Results from a new poll show that nearly 70 per cent of current home owners are looking to pay down their mortgage sooner. If you are looking to lock in at a great rate and protect yourself when interest rates rise, there is no better mortgage in Canada for you."
The survey also found that:
- 69 per cent of current home owners would consider a shorter
amortization period if it helped reduce the overall cost during the
life of their mortgage
- 74 per cent of Canadians looking to purchase their first home are
considering an amortization of 25 years or less
BMO's economics department says it is widely expected that interest rates will rise in the not-too-distant future.
BMO set the maximum amortization for this mortgage at 25 years, instead of 35 years. "This is the right mortgage for the times," Mr. Techar added. "By reducing your amortization, you will save tens of thousands of dollars in interest charges. If you want to have your mortgage-burning party a decade sooner than your friends, visit your branch or take advantage of our mobile mortgage specialists - they'll come right to your door to help you choose the mortgage that's right for you. We'll work with you to stress-test your budget now, so you don't become stressed out later.
"BMO is making money make sense for Canadians," said Mr. Techar. "This new mortgage, combined with BMO SmartSteps, which provides essential banking tips, gives our customers immediate ways to save money now."
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SOURCE BMO BANK OF MONTREAL
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