It's been quite a stretch since CMT's last term analysis. Given the slew of precedent-setting rate changes lately, it's high time we run another one.
For those in solitary confinement last week, the big news was BMO's 2.99% 5-year Low-Rate Mortgage. It made every major newspaper and newscast in the country. Even the CEO of competitor ING Direct, Peter Aceto, found it compelling. He told the Toronto Star:
“If you’re satisfied with everything else, take it, because 2.99 for 5-year money is a great rate…I had some of the people here look into it, and it’s definitely the lowest they’ve been able to find for as far back as it’s been tracked.”
(Aceto went on to suggest that 2.99% was “unsustainable” from a profitability standpoint.)
In any event, say what you will about the limitations of BMO's product (and there are many), but it sure did push down rates industry-wide. Here's a look at how the recent rate changes impact mortgage terms:
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