Tag Archives: mortgage terms

Record Low Mortgage Rates

To the Canadian public mortgage rates hit their all-time low earlier this year when BMO announced their 2.99% 5 year Low Rate Mortgage.  The public could hardly not notice.  It’s not every day that a bank treats a mortgage rate change like a product release.  The strategy worked brilliantly and word spread like wildfire.  Industry insiders, meanwhile, rolled their eyes at the offer. The 5 year 2.99% mortgage rate came … Read More

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BMO’s 2.99% Mortgage Rate “Banks” Profits

Bank of Montreal (BMO) was the first of the major banks to release second quarter earnings.  The 4th largest Canadian bank had an impressive 27% increase in net income for the quarter.  However when you dig into the numbers, cost cutting was a major contributor and profit margins were notably lower.  One of the reasons cited for the lower margins was the deep discounted 5 year fixed mortgage rate at … Read More

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BMO’s Mortgage Spin Doctors at Work

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 … Read More

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Monthly or Bi-Weekly Mortgage Payments?

So you’ve been approved for your mortgage, and have chosen your term and amortization.  Now it’s time to pick your payment frequency; monthly, semi-monthly, weekly or bi-weekly.  Most people are aware that there are advantages to paying your mortgage on a bi-weekly basis, but aren’t quite sure why. One perception is that by paying bi-weekly you are making more frequent payments so less interest will accumulate.  While this is true, … Read More

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Mortgage Rate vs. Mortgage Service

When shopping for a mortgage, the first thing borrowers looks for (and sometimes the only thing) is the best mortgage rate.  While mortgage rate is undeniably the single most important factor in choosing a mortgage, other factors could overwhelmingly make a low rate mortgage a bad choice.  Some of you may be thinking, “What other factors?” Other factors will rank in priority according to an individual’s circumstances, but they’ll affect … Read More

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Mortgage Lingo 101

Although millions of Canadians hold a mortgage very few would consider themselves experts. The fact is that once a homeowner arranges a mortgage they soon forget their newly acquired expertise. It’s kind of like cramming for an exam and then forgetting the material soon after you pass the course.  After all, the average Canadian only touches their mortgage once every 3 years and many much less often then that. Presented … Read More

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