Two new mortgage loan solutions from Laurentian Bank

    MONTREAL, June 20 /CNW Telbec/ - Laurentian Bank of Canada presents two
new mortgage options: Up to 7% Cashback(1) and Adjustable Rate(2). These new
mortgage loan products have been designed to meet the needs of a diversified
clientele looking for a product more adapted to their particular situation.
With the launch of these new highly competitive offers, Laurentian Bank
further strengthens its position of a household bank.

    Up to 7% Cashback Mortgage

    This 7-year fixed-rate mortgage loan with cashback of up to 7% of the
borrowed capital is particularly suited for clients who take out their first
mortgage and who seek stability in interest rates. With this loan product, the
client is protected from rate fluctuations for 7 years. Moreover, first-time
homebuyers often have many projects in mind, and this cashback offer of up to
7% of the borrowed amount is not negligible. It will help new homeowners pay
for expenses related to moving, renovations, furniture purchase, a happy
occasion like a new baby, or will simply allow them to take vacations that
they have been dreaming of for so long.
    While this mortgage loan product was designed with first-time buyers in
mind, it also meets the needs of people who are on a somewhat tight budget
with little flexibility and who need cash right away. With this new offer, the
client gets the stability of payments for a period of 7 years with cashback at
the time of the disbursement of the mortgage loan. Why wait to start your

    Adjustable Rate Mortgage

    The Adjustable Rate mortgage solution targets experienced buyers who are
financially comfortable and who have certain tolerance for rate fluctuations.
This loan product is particularly suited for people who hesitate between a
fixed rate and a variable rate, since the adjustable rate option offers the
best of both worlds! With a term of 5 years, the interest rate is fixed for
the first year and is subsequently adjusted every six months. Thus, clients
get a great rate in the first year, allowing them a little break. Moreover,
what makes this mortgage loan product especially attractive is the reference
index - it is based on the closed 6-month fixed rate, which is one of the
lowest mortgage interest rates. In a nutshell, the client benefits from low
short-term interest rates (closed 6-month fixed rate) that Laurentian Bank
further improves with an additional rate rebate of 1.50% in the first year and
0.50% in subsequent years (every 6 months).

    About Laurentian Bank

    Laurentian Bank of Canada is a Quebec banking institution that operates
across Canada and is dedicated to meeting its clients' financial needs through
excellence in service, as well as through its simplicity and proximity. The
Bank serves individual consumers and small and medium-sized businesses, as
well as financial advisors through B2B Trust. It also provides full-service
brokerage solutions through its Laurentian Bank Securities subsidiary.
Laurentian Bank is well established in the Province of Quebec, operating the
third largest retail branch network and is also a performing player in
specific market segments elsewhere in the country. Laurentian Bank of Canada
has over $17 billion in balance sheet assets and $15 billion in assets under
administration. Founded in 1846, the Bank employs more than 3,300 people. Its
common shares are listed on the Toronto Stock Exchange (TSX: LB). For more
information, please visit

    1. Up to 7% Cashback
    The 7% cashback percentage is applicable to a seven (7) year closed term
    at the interest rate posted by the Bank. Maximum cashback applicable on
    the 7% cashback offer is $35,000. Combinations of cashback and interest
    rate rebates are also available for a closed term of seven (7) years: 5%
    cashback with a 0.25% interest rate rebate, or a 4% cashback with a 0.50%
    interest rate rebate. Maximum cashback payable is $25,000 for the 5%
    cashback option and $20,000 for the 4% cashback option. The annual
    percentage rate (APR) associated with the 7% offer as at June 14, 2007,
    is 7.70%. As at June 14, 2007, the APR associated with the 5% cashback
    option is 7.45%, and the APR associated with the 4% cashback option is
    7.20%. All APR mentioned are based on a $150,000 mortgage loan amortized
    over 25 years with a 7-year term. Cashback is calculated based on the
    capital amount borrowed and used. All quoted interest rate rebates
    correspond to the maximum rebate granted on the interest rate posted by
    the Bank on the date of the loan application and according to the
    percentage of the cashback option requested. Limited-time offer. New
    mortgage applications only. Subject to change without notice. Certain
    conditions apply. Cannot be combined with any other offer. Subject to
    credit approval by Laurentian Bank of Canada.

    2. Adjustable Rate
    The annual percentage rate (APR) assumes a fixed interest rate for a
    6-month closed term at 6.75% for the entire term of the loan (rate in
    effect June 14, 2007). A 1.50% rebate applies on the closed 6-month fixed
    interest rate for the first 12 months. A 0.50% rebate applies on the
    interest rate for subsequent revisions. The annual percentage rate (APR)
    is 6.05% based on a loan of $150,000 amortized over 25 years with a
    5-year closed term. Following the date of the disbursement, the
    applicable interest and payment rates will be revised after the first
    12 months and subsequently every 6 months according to Laurentian Bank's
    6-month closed fixed rate in effect. Limited-time offer. Subject to
    change without notice. Cannot be combined with any other offer. Subject
    to credit approval. Certain conditions apply.

For further information:

For further information: Manon Stébenne, Senior Manager, Media and
Public Relations, Laurentian Bank of Canada, Office: (514) 284-4500, ext.

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Laurentian Bank of Canada

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