Own Your Life

The Bank Of Montreal, also know as BMO set a Canadian bank record for the lowest 5 year mortgage interest rate from a "bank". Although this sounds enticing, there are a number of things you should be aware of and I caution you to know your products before making an decisions.

First off, my office has offered 2.99% or even lower in the past, but the lender was not a “big bank”. We are generally able to get lower rates from the broker channel lenders who specialize in mortgages instead of wearing every possible hat. We have nothing against BMO and previously used them for certain mortgage products but you need to read the fine print in this and other "teaser rate" offers.

Here are the Coles Notes:

• Amortization is restricted to 25 years
• You CAN NOT cancel your term early unless you have a bona fide sale
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• You have until only January 25, 2012 to obtain this rate
• Maximum lump sum annual payments are only 10%
• Maximum monthly payment increases are only 10%
• BMO’s line of credit can not be attached to this mortgage

My phone was ringing off the hook yesterday with people requesting this mortgage without reading the fine print. Please always proceed with caution and research these promotion rates before you sign on the dotted line. I am certainly not saying don’t take this mortgage, just make sure it fits nicely with your future goals and understand the potential restrictions because they could be far more costly down the road.

Own Your Life,

Jessi Johnson

Vancouver Mortgage Broker

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