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,
Kasia.Lech@bmo.com; Laurie Grant, Vancouver, Laurie.Grant@bmo.com, (604)
665-7596; Lucie Gosselin, Montreal, (514) 877-8224, Lucie.Gosselin@bmo.com;
Internet : www.bmo.com