Pamela Vasiliu
Sales Representative
pvasiliu@remax.net

RE/MAX Professionals Inc.
Brokerage
Independently owned and operated.

Date: Sunday December the 17th, 2017 
416-236-1241

 

   

Bank of Montreal cuts special five-year fixed-rate mortgage to 2.79%, the lowest among big banks

March 17, 2015

Bank of Montreal cut the rate on a promotional mortgage product to the lowest among Canada’s biggest lenders amid an increase in housing prices in the country’s largest cities.

Bank of Montreal reduced its 5-year fixed mortgage to 2.79% from 2.99%, the Toronto-based company said Tuesday in a statement. Its standard 5-year mortgage remains at 4.74% for those who don’t qualify for the lower rate, according to the firm’s website.

The rate cut comes ahead of the key spring real estate season.

BMO left its other rates unchanged Tuesday.

“Given long-term interest rates are close to all-time lows and the recent market uncertainty, there are some benefits to locking in to a fixed-rate mortgage,” said Doug Porter, the lender’s chief economist.

Bank of Montreal follows Royal Bank of Canada in lowering rates on 5-year mortgages. It’s the first major lender to announce a reduction following the Bank of Canada’s overnight lending rate cut in January that sent interest rates to a record low and prompted lenders to cut their prime rate.

The average price of a Vancouver property rose 1.8% to about $825,000 in January from a year earlier and climbed 4.9% to $576,000 in Toronto, according to the Canadian Real Estate Association. Sales jumped 8% and 5.3%, respectively, as Canada’s two largest cities head into the busiest season for buying and selling houses.

Fixed-rate mortgages tend to rise and fall with bond yields. Yields on 5-year government bonds plunged 17 basis points on the day of the Bank of Canada cut, to about 0.86%. That’s down from 1.8% in April.


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