BMO Lowers Rate to Encourage Canadians to Select a Mortgage With a 25 Year Amortization
BMO Reiterates that the 25 Year Amortization is the Right Mortgage for Right Now
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 12/15/11 -- BMO Bank of Montreal announced today that it is lowering the rate for its 5 year low-rate 25 year amortization mortgage by 20 basis points to 3.49 per cent effective tomorrow. BMO is also advising potential homebuyers to consider a mortgage with a 25 year amortization as a way to save thousands of dollars on interest costs and help manage debt levels.
Canadians have set a record for household debt. According to Statistics Canada, the debt burden has exceeded levels in the United States and the United Kingdom. The ratio of debt to personal disposable income now sits at nearly 153 per cent. Bank of Canada Governor Mark Carney has issued another warning to Canadians to be cautious with their spending.
"Canadians need to be continually examining ways to reduce overall housing costs," said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. "BMO has been a leader developing products, such as the low rate mortgage with a maximum 25-year amortization, that we believe are directly relevant to today's environment and specifically designed to help Canadian consumers manage their debt. In September, BMO urged Canadians to choose a 25 year amortization as a way to significantly reduce the amount of interest paid over the life of the mortgage."
Ms. Archdekin added, "It is important for homeowners or potential buyers to be prudent and stress-test their mortgage against a higher interest rate to ensure they can afford what they signed up for. Total housing expenses should not consume more than one-third of total household income."
BMO Bank of Montreal's popular five-year fixed low rate mortgage will be available tomorrow to all Canadians at a posted rate of 3.49 per cent.
BMO offers the following tips for Canadians to help them reduce mortgage debt and become mortgage free faster:
Consider a shorter amortization:
Make sure you can afford your home, both now and in the future:
Think about the future:
Make a larger down payment:
Make pre-payments when you can:
Think carefully about fixed vs. variable:
Contacts:
Media contacts:
Matthew Duffin, Toronto
(416) 867-3996
Sarah Bensadoun, Montreal
(514) 877-8224
Laurie Grant, Vancouver
(604) 665-7596
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Datum: 15.12.2011 - 21:07 Uhr
Sprache: Deutsch
News-ID 97711
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contact information:
Town:
TORONTO, ONTARIO
Kategorie:
Commercial & Investment Banking
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Die Pressemitteilung mit dem Titel:
"BMO Lowers Rate to Encourage Canadians to Select a Mortgage With a 25 Year Amortization"
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BMO Financial Group and BMO Bank of Montreal (Nachricht senden)
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