Tagbmo no frills mortgage

Posted August 4, 20151 Comment Interest rates

Hey, what happened to the BMO “Low Rate Mortgage”?

Remember the BMO “Low rate mortgage”? It seems to have disappeared… Well, not really. BMO has quietly changed the label and now calls it the ‘Smart Fixed Rate Mortgage’.

Sounds impressive…but it’s not. I’ll save the suspense. This is the same product that’s full of limitations, restrictions and an inflated prepayment penalty calculation…. It isn’t the best rate… Certainly NOT the best mortgage product. Continue reading “Hey, what happened to the BMO “Low Rate Mortgage”?”

Posted March 27, 2015 Interest rates

News Flash! BMO and TD’s 2.79% is great but it ISN’T the lowest rate!

It’s become an annual tradition. Every year around this time, BMO announces, what appears to be a great mortgage for a 5 year fixed rate. Last week, BMO announced they were lowering their 5 yr Fixed rate to 2.79%. TD jumped in and did the same thing. Wow! That’s the lowest advertised rate by a BIG SIX BANK, in history. (excuse me while I yawn..pause for long yawn here)

Hey! Guess what? It’s NOT the best rate available! Read on….

HERE’S 7 FACTS BMO AND TD DON’T WANT YOU TO KNOW, BUT I’LL TELL YOU: Continue reading “News Flash! BMO and TD’s 2.79% is great but it ISN’T the lowest rate!”

Posted April 8, 20143 Comments Consumer Debt

A 2nd mortgage? Yes, this option can save you money.

Quick, what’s the first thing that comes to mind when you think of “second mortgages”? For some it could be that shady looking character in a smoke-filled pool hall… guys with gold chains and a baseball bat nearby. Maybe you’re thinking of someone in financial trouble. Or maybe it’s just someone who doesn’t want to pay outrageous costs and penalties to refinance their existing mortgage.

The mere mention of 2nd mortgages conjures up all sort of images. Most of them, negative. For many, a 2nd mortgage can be a last resort solution during a financial crisis. For several others, it can be an opportunity to save money. That’s right, to save money.

Sure, 2nd mortgages carry a higher interest rate than 1st mortgages but, they can also serve a purpose. One of those purposes can be to save you money. Yup, I said it again. There are some new trends emerging with today’s new mortgage products that are forcing consumers to seek other options. Two of these trends are INFLATED PREPAYMENT PENALTIES and NO FRILLS MORTGAGES! Continue reading “A 2nd mortgage? Yes, this option can save you money.”

Posted March 27, 2013 Consumer Debt

BMO caves in to Federal govt pressure and raises mortgage rate.

It was bound to happen. BMO announced their so-called ‘low-rate’ (NO FRILLS) 5 yr fixed rate mortgage would be increasing to 3.09% from 2.99%. This comes shortly after the Federal Minister of Finance, Jim Flaherty, said that he called BMO and asked them to pull their 2.99% ads. Last week, the Minister’s office asked Manulife Bank to withdraw their recent ad promoting a similar low rate.

While, 2.99% isn’t the best rate today, it was the lowest advertised rate from the BIG SIX BANKs. It was somewhat symbolic. Of course, Mortgage Brokers have access to even lower rates through the wholesale mortgage market, but these lenders don’t have the deep advertising pockets that BMO or the other BIG SIX BANKs have. So the publicity surrounding this rate and the increase will get much more air-time. You can actually find full-featured 5 year mortgages at 2.89% today, through a good mortgage broker (a word of warning.. I’ve seen lower rates offered, and I have access to these products… but these products are not full-featured and come with some limitations that make them less attractive… just be careful when choosing your mortgage and your mortgage broker)… Continue reading “BMO caves in to Federal govt pressure and raises mortgage rate.”

Posted March 5, 2013 Interest rates

BMO’s 2.99% No Frills mortgage is back… and so is our warning to stay away from it!

So you’re shopping for a mortgage… and you see 2.99% advertised by BMO.. and you think, Wow, that’s a great rate!!… but is it really that great? And is it really a great mortgage product?

Well, first, what if I told you there was a lower rate out there? And what if I told you there was a lower rate without the restrictions and limitations of BMO’s NO FRILLS mortgage?

Ok, now that I got your attention, let’s continue…We saw this same product and rate advertised last year, in January 2012. BMO promoted their NO FRILLS, oops, I’m sorry, they want us to call it a ‘low-rate’ mortgage (guess that sounds better). There was a buzz in the air. My phone rang off the hook and my inbox was full of emails asking what this was all about. Continue reading “BMO’s 2.99% No Frills mortgage is back… and so is our warning to stay away from it!”