Hmmm, this is interesting
Bank of Montreal announced yesterday that they are drastically reducing the rate for a five year fixed mortgage to 5.25%. Surprisingly though it is still not on their website, must be that their geeks don’t work on weekends, anyway I digress.Why is this intriguing to me? If you read the article the President was quoting as saying“Helping to lower funding costs is significant for the entire industry and we are excited to pass along the savings to our customers. By offering a very attractive rate that is guaranteed for a full five years, we are giving Canadians the added benefit of predictability and comfort during an uncertain economic environment.”Let’s all say it together “THREE CHEERS FOR THE BANK OF MONTREAL!!!”No let’s see if the other banks have the moxy to step up and do the right thing. These measures are needed to instill confidence to the system AND to get consumers out buying houses. This is precisely what the government had intended when they announced the purchase of CMHC insured loans from the banks, to lower the banks cost of funds so they could pass that on to consumers.Again, good for you BMO, shame on you other banks, now wake up and get in the game!!!
