It’s amazing how a little spin can turn a constraint into a marketing tool. Bank of Montreal’s (BMO’s) “Low Rate Mortgage” comes with some fine print, and one of the least offensive of these is a maximum amortization of 25 years. Most other mortgages offer the flexibility to go to 30 years, although you have the choice to set it much lower if you want. Not a big deal, but a 25 year amortization can make it challenging for some to qualify and others won’t like the resulting cash flow.
BMO is now marketing this mortgage with the tag line “SHRINK YOUR mortgage” and “Be mortgage free sooner, only from BMO. Huh? BMO limits their amortization to 25 years so they’re the only ones that can help you be mortgage free sooner? I don’t think so. Another mortgage lender could trump that with a mortgage product limited to a 20 year amortization. “Be mortgage free sooner, only from us!” What’s next? A mortgage that forces borrowers to take bi-weekly accelerated payments?
I don’t know about you, but to me a better mortgage has more flexibility, not less. What’s missing her is the guidance and advice of a good mortgage professional who can help you with your mortgage strategy. Most of us dream about the day we’re mortgage free, but there’s more than one way to skin that cat. If you’re looking to pay off your mortgage sooner seek the advice of an accredited mortgage professional, and don’t settle for a pair of handcuffs.