Don't Take a "Double Bogey" on Your Mortgage

BMO only Major Canadian bank offering a five-year fixed rate mortgage below 4%

TORONTO, April 9 /CNW/ - BMO Bank of Montreal, the only major Canadian bank to offer a five-year low-rate fixed closed mortgage below four per cent, today urged Canadians to look at the leader board when it comes to mortgage rates.

"A recent survey revealed that 71 per cent of current and future homeowners think house prices are too high. Not only that, 15 per cent of Canadians reported being caught up in bidding wars, and for those who had housing bids rejected, 14 per cent believe it caused them to overspend on their next offer," said Jane Yuen, Senior Manager of Mortgages, BMO Bank of Montreal.

"It's easy to get caught up in the emotions of a home purchase which can lead to stretching one's budget too thin. Especially in today's heated market, Canadians need to avoid getting locked into a bidding war that pushes their mortgage payments outside their comfort zone. In short, you need to know when to walk away," added Yuen.

BMO advises Canadians to stress-test their financial budget now based on a higher interest rate to ensure they are adequately prepared now that rates are going up. Put yourself in a position to score an 'eagle' with BMO's 3.95%, five-year fixed, maximum 25 year amortization mortgage. By locking in with a low rate and low amortization you will save thousands of dollars in interest and be mortgage free a decade sooner.

By getting pre-approved, customers can reduce their stress - knowing that they have up to 90 days to search for their home and take advantage of this great rate.

Talk to a BMO Mortgage Specialist about getting pre-approved. Benefits include:

    
    -   Guaranteed financing which will be helpful when you make an offer on
        a house.
    -   Knowing how much you can borrow, and what your monthly payments will
        be.
    -   Guaranteed rate during your 90-day pre-approval period.
    

For further information: For news media enquiries, please contact: Martha McInnis, Toronto, [phone], [email protected]; Sarah Bensadoun, Montreal, [phone], [email protected]; Internet: www.bmo.com