Welcome to Mortgage Wars

(March 14, 2012 )

In January, BMO announced a special, time-limited five-year fixed rate of 2.99% that included some restrictions on the term, a maximum 25-year amortization and pre-payment options.  The other major Canadian banks followed suit, but when BMO pulled the promotion early, the other banks hit the cancel button as well.

This week, in what many called a bombshell, BMO re-introduced the five-year, 2.99% offer and almost immediately, TD Canada Trust, RBC, CIBC and Scotiabank fired back with their own 2.99% offers, but with a four-year amortization.

"With all the available special offers in the market, consumers may be tempted by simply choosing the lowest rate," says Farhaneh Haque, director, mortgage advice, TD Canada Trust.  "However, for many customers, the best mortgage offer may be the one that recognizes that life isn't always predictable and that provides them with flexibility to accommodate their circumstances."

Should you investigate the 2.99% rates?  Absolutely you should, whether you're looking at a new mortgage or refinancing, just be sure to arm yourself with the best weapon: Information.  Shop around, talk to a mortgage broker.  It might take a little time, but in time, it will save you a lot of money in interest payments.

Source: Article from The Calgary Sun