BMO Bank of Montreal (BMO) has kicked off
a Canadian mortgage price war.
From 11 March, BMO is running a three week
price promotion offering a five year mortgage at 2.99% and a 10
year deal at 3.99%.
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Katie Archdekin, head of mortgage
products, BMO said:
“BMO offers two outstanding low-rate
mortgages – each come with a shorter amortization which is helping
Canadians become mortgage-free faster, pay less in total interest,
protect themselves against the possibility of rising interest rates
and help secure a debt-free retirement.”
Royal Bank of Canada responded by
launching a four year mortgage rate offer of 2.99% available from 9
March.
Marcia Moffat, head, home equity
financing, RBC, said:
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By GlobalData“Some low rate mortgage offers advertised
in the market are highly restrictive. No frills may be great in the
supermarket, but it’s usually not the best choice for your
mortgage.
“RBC mortgages come with all the frills.
Our standard features and benefits include accelerated payment and
deferral options, prepayment privileges and amortization choices of
up to 30 years.”
TD Canada Trust and CIBC have also rolled
out four-year fixed mortgage rate offers at 2.99%.
CICB was also quick to
point out that its usual mortgage features would apply to the
four-year mortgage offer.
The mortgage price war follows forecasts
that house prices in Canada are expected to remain flat for the
next 24 months.
