Today we saw 2 announcements…. For the first time ever, we saw a 5 yr fixed rate being offered for 2.99%. This is not a No Frills mortgage… so you don’t have to worry about minimal prepayment privileges, or restricted payout options, and no monkey business when it comes to penalty calculation…. You probably won’t see a lot of publicity about this because of the mainstream media was quick to promote the BMO NO FRILLS mortgage as the first 5 yr fixed mortgage under 3.00%….earlier this year. But I can tell you, it’s a significant milestone.
And we also saw the introduction of the lowest Variable rate mortgage in almost a year… Prime less 0.35%, or 2.65%. This isn’t one of those NO FRILLS Variable rate mortgages that is full of restrictions… you have all the regular options including being able to lock into the BEST discounted fixed rate at any time.
These 2 offers are very special… They don’t come with hidden clauses or back door penalties, or exit fees. These products are legit!
The driver behind the pricing is competition, the increased spread in profit margins and a slowing housing market.. The thirst to grow a business and keep the business on the books is going to see a lot of competition…. and the winners are us… the borrowers…
If you want more info on these rates or other mortgage related issues, call me anytime.
416 224 0114
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.