This is a two-week promo (at the moment) valid until JANUARY 25TH.
There are conditions to their offer. The main terms of BMO's special are as follows:
- Maximum Amortization: 25 years
- Rate Hold: Up to 90 days
- Pre-Approvals: Allowed
- Lump-sum Pre-payments: 10% maximum per year (1/2 of the 20% that BMO normally allows)
- Optional Payment increase: 10% maximum per year (again, 1/2 of the 20% that BMO normally allows)
- Term: Fully closed unless you sell the property, refinance (with BMO only), or early renew into another BMO mortgage.
- BMO Mortgage Cash Account: Not available with the Low-Rate
- BMO Skip-a-Payment: Not available with the Low-Rate
- BMO ReadiLine: Not available with the Low-Rate
- Other Details: Not applicable to non-owner occupied rental properties
Most importantly, the client is tied to BMO for the entire 5 year term of their mortgage, even if they want to break it and pay a penalty, they are forced to stay with BMO. Client loses negotiating power.
Included is a link to Canadian Mortgage Trends below, the link, and subsequent responses from other peers give some other strategy and personal commentary.