BMO Launches New Variable Rate Mortgage

    BMO Offers Attractive Lending Rate: 3.8% with Option to Lock in at

    TORONTO, Feb. 10 /CNW/ - BMO Bank of Montreal announced today a new 5
Year Variable Rate Closed mortgage product that allows customers to take
advantage of record low lending rates with the flexibility to lock into a
fixed rate closed mortgage at anytime.
    "Recently we've seen an increase in the number of customers choosing a
variable rate mortgage", said Lynne Kilpatrick, Senior Vice President BMO Bank
of Montreal. "At 3.8% our new 5 Year Variable Rate Closed mortgage offers a
very competitive rate yet gives our customers the peace of mind of knowing
they can lock in at anytime should rates rise."
    "We want to make buying a home easier and help you pay off your mortgage
faster. Our mortgage experts are here to help you make sense of the
home-buying process and choose the right mortgage with confidence", added

    Five Tips for Managing Your Mortgage

    1.  When you get Paid, Pay your Mortgage

        -  Most people are paid every two weeks - consider aligning your
           mortgage payment with your paycheque - you'll be amazed how much
           you can save in interest over the life of the mortgage
        -  Traditionally mortgage payments are made every month
        -  With more frequent and accelerate payments, you'll pay your
           mortgage down faster, saving you interest costs over the long term

    2.  Take Advantage of Pre-Payment Options

        -  Increase monthly payments and/or make lump sum payments using
           20+20 Prepayment options every year to become mortgage-free
           faster. With the first "20" you can prepay up to 20% of the
           original mortgage amount each calendar year in minimum amounts of
           $100 as many times as you wish during the year. With the second
           "20" you can increase your mortgage payment (principal and
           interest) by up to 20%, once each calendar year.

    3.  Skip payments if necessary

        -  Skip up to one month of mortgage payments in a calendar year for
           any reason with the Take A Break option.
        -  BMO's Family Care option frees up cash to help when a newborn
           arrives or you are caring for an ailing family member by letting
           you skip up to 4 months of mortgage payments.

    4.  Assure your family's financial security

        -  Mortgage Life Insurance and Accident & Illness Protection
           Insurance are available to protect your family when you need it
        -  Mortgage Life Insurance will cover the balance of your
           mortgage - up to a maximum of $600,000.
        -  Accident & Illness Protection will provide a maximum of $3,000 per
           insured person per month.

    5.  Build a rainy day borrowing reserve

        -  When you take advantage of your prepayment privileges, you
           automatically start to build a borrowing reserve called a Mortgage
           Cash Account. As this reserve grows, you can re-borrow these funds
           at any time, for any reason, in amounts starting from $2,500
           without the inconvenience of a new mortgage application.

For further information:

For further information: Kasia Lech, Toronto, (416) 867-3996,; Laurie Grant, Vancouver,, (604)
665-7596; Lucie Gosselin, Montreal, (514) 877-8224,;
Internet :

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