BMO Bank of Montreal Lowers Mortgage Rates

5 Year Fixed Special Rate and 1 Year Fixed Posted Rate are Best Offered by Major Canadian Banks

TORONTO , Dec. 9 /CNW/ - BMO Bank of Montreal today announced it is decreasing its residential mortgage rates, effective December 10, 2009 .

"With the Bank of Canada reiterating its commitment to keep the policy rate at its record low until the middle of next year, and with economic growth subdued and inflation well in check, mortgage rates continue to run at very attractive levels," said Michael Gregory , Senior Economist, BMO Financial Group. "As long as borrowers keep in mind that renewal rates will likely be higher, today's ultra-low borrowing costs represent a unique opportunity to purchase a property."

The new rates are:

    
    Fixed Rates:                   To:         Change:
    6 month fixed convertible     4.65%         0.00%
    6 month fixed open            6.45%         0.00%
    1 year fixed open             6.55%         0.00%
    1 year fixed closed           3.00%        -0.50%
    2 year fixed closed           3.75%         0.00%
    3 year fixed closed           4.25%         0.00%
    4 year fixed closed           5.14%        -0.05%
    5 year fixed closed           5.49%        -0.10%
    6 year fixed closed           5.49%        -0.10%
    7 year fixed closed           6.60%         0.00%
    10 year fixed closed          6.70%         0.00%
    18 year fixed open            8.95%         0.00%

    Variable rates:                To:         Change:
    5 year closed                 2.25%         0.00%
    3 year open                   3.05%         0.00%

    (The interest on fixed-rate mortgages compounds semi-annually, not in
advance.)

    Special Offers*              To:         Change:
    5 year(fixed/closed)          4.19%        -0.10%

    *This special discounted rate is not the posted rate of BMO Bank of
    Montreal. Rate is subject to change without notice. Offer may be
    withdrawn or extended without notice. Mortgage funds must be advanced
    within 90 days of the application.
    

For further information: Media Contact: Martha McInnis, [phone], [email protected], Internet: www.bmo.com