Bank of Montreal is competing fiercely amidst a heated real estate climate, by offering the largest discount ever posted by a Canadian bank.
Buyers will be offered a 5 year variable rate of 2.45 until the end of May, which is a full percentage point below the prime rate.
Bank of Montreal’s rate beats similar mortgage rates by other Canadian lenders, including HSBC Holding Plc’s 2.49% variable rate, which has been undercutting the market for the past year.
- Mortgage Rate Update: Montreal, May 2018
- Bank Of Canada Key Interest Rate Update: April 2018
- Average CAP Rates In Montreal Per Property Type: Q4, 2017
Mortgage growth has been at its slowest since 2001, which has prompted lenders such as BMO and HSBC to drop their rates in order to maintain market share.
Meanwhile, fixed mortgage rates have been on the rise following an increase in bond yields. The typical discretionary rates falls around 3.49% — some 10 basis points higher than in January.
Posted rates are also creeping up, with TD Bank increasing its five-year rate to 5.59 per cent, and Scotiabank pushing up its rate 20 basis points to 5.34%.
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