Bank of Montreal offering 2.99 per cent five-year mortgage rate once again

 

 

TORONTO – The Bank of Montreal is again offering its ultra-low 2.99 per cent mortgage rate less than two months after a similar promotion set off a race to the bottom with some of its biggest competitors.

The bank is lowering the rate of its five-year mortgage by 50 basis points starting Thursday.

It’s also introducing a new 10-year mortgage, which comes with an introductory fixed rate of 3.99 per cent and a maximum 25-year amortization. That rate will be available starting Sunday.

Both deals are available until March 28.

BMO has been urging customers to pick mortgages with shorter amortization periods, said Frank Techar, CEO of BMO’s Canadian personal and commercial banking division.

“At BMO, we believe the housing market is poised for a soft landing. Canadians can help ensure this outcome by choosing a shorter amortization and not over extending themselves, which we believe will have a moderating influence on housing prices,” he said in a release.

When BMO began offering the 2.99 per cent rate for a two-week period back in January, TD Bank and Royal Bank promptly answered with their own deals.

TD Bank promoted a four-year special fixed rate at 2.99 per cent.

Royal Bank later matched that with its own four-year 2.99 per cent rate offer, along with a seven-year special fixed rate of 3.99 per cent.

Both were available until the end of February, with amortization periods of up to 30 years.

Posted via email from Selling Cambridge with Clare DeJong