Mortgage rates slashed
The Bank of Montreal (TSX:BMO) is lowering its five-year fixed-rate mortgage to back to levels that caused former Finance Minister Jim Flaherty to express concerns last year.
The bank says it will offer a five-year rate of 2.99 per cent, down from 3.49 per cent.
BMO is the first big bank to lower the key rate beneath three per cent, a level that caused Flaherty to publicly address BMO in March 2013, saying that he disapproved of the rate and discouraged other big banks from following its lead.
At the time he said he believed in "responsible lending," and that he was concerned such low rates would work against his attempts to slow the momentum in the housing market.
Flaherty left his role as finance minister last week after a surprise resignation earlier in the month. He was replaced by Joe Oliver.
"This rate change is driven solely by the fact that bond yields have fallen and we are in what has traditionally been the busiest season for buying a home," said BMO spokesman Paul Deegan in an emailed statement.
Other Canadian banks have also recently cut their rates — TD Bank (TSX:TD) reduced its four-year fixed-rate mortgage to 2.97 per cent earlier this month, while Scotiabank (TSX:BNS) lowered its rates across the board while issuing a four-year special rate at 2.94 per cent.
Comments on this story are pre-moderated. Before they appear, comments are reviewed by moderators to ensure they meet our submission guidelines. Keep it clean, keep it civil, keep it truthful, stay on topic and be responsible. Comments are open and welcome for three days after the story is published. We reserve the right to close comments before then. Comments that appear on the site are not the opinion of Castanet, but only of the comment writer.
Read more Business News
- Challenge pro field heats upPenticton / S. Okanagan - 4:10 pm
- Knox, Dilworth parks reopenKelowna - 4:23 pm
- Underwear run a big hitPenticton / S. Okanagan - 3:07 pm
- Puppy attacked at parkKelowna - 11:34 am
|QHR Technologies Inc||1.20||-0.01|
|Anavex Life Sciences||0.265||+0.005|
|Copper Mountain Mining||2.99||+0.11|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.26||+0.045|
Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...
Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...
Let’s face it; nobody wants to pay for legal services if they do not have to, but if you have been injured in an accident you may have thought about hiring a lawyer to help you navigate your cla...