BMO 2.99% 5 Year Offer

Here is a "closer look" at the BMO 2.99% 5year offer- and some of the points to be aware of.

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.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2012/01/bmos-299-5-year-fixed-sets-bank-record.html