It looks like BMO is restarting some rate wars out there…however it is important to remind you that this rate offer may NOT give you all the bells and whistles of a regular mortgage product that some other mortgage lenders offer! Unfortunately for those who buy into it, BMO’s Low-Rate Mortgage is a product that comes with some major restrictions:
1. You only get 10%/10% prepayment privileges. Where many other lenders give homeowners the option to increase their monthly payments by 20% or more each year, as well as make lump-sum payments on the original mortgage in that same percentage range, BMO’s Low-Rate Mortgage restricts homeowners to 10% for both categories. This makes it extremely difficult to pay down the mortgage sooner, without facing a prepayment charge to do so.
2. You cannot skip a payment or access a mortgage cash account. BMO has a number of flexible mortgage options, none of which are available to customers who lock into the bank’s 2.99% mortgage product. Skipping a payment, should you need to, is not an option. And while other BMO mortgage customers can re-borrow prepaid funds at any time, through a Mortgage Cash Account, those with the bank’s Low-Rate Mortgage do not have the same privileges.
3. You cannot transfer your mortgage to another lender until your term is up. Throughout your 5-year term with BMO’s Low-Rate Mortgage, the only way you can refinance, transfer or payoff the balance of your mortgage, is if you stay with BMO while doing so, or if you sell your home. This restriction is especially tough, as it is not uncommon for homeowners to break their mortgages early. And don’t forget that doing any of these things would result in a mortgage prepayment charge.
I have access to 2.99% 5 Year rate with all the standard prepayment terms and no hidden fine print! Feel free to contact me to lock in your low rate TODAY!