BMO is raising the ante among big banks. Starting October 31 they’ll offer free banking for 5-year mortgage customers. They claim an $800 cost savings–but that depends on how much you bank.
Don’t be surprised if other banks follow suit. The mortgage industry is about to get a whole lot more competitive in the next 12 months.
Keep in mind, however, that in most cases you’re better off finding a lower rate mortgage, or one with more flexible terms. $800 savings is peanuts if your rate is 1/4 point higher on a big mortgage.
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Last modified: April 25, 2014
Hi – how exactly would you say the mortgage industry is going to get more competitive over the next year?
Do you mean more ‘extras’ thrown in like BMO, or do you mean in terms of rate?
I don’t understand how BMO can claim this as a “new” offer, because I signed up for this promotion last July…
I too have heard of people getting this deal previously–but I guess you had to ask for it explicitly.
Supposedly this is their “official” unveiling.
Rob, co-Ed.
Hi Al,
On “A”-credit products, lenders will likely add:
1. More flexibility (possibly more liberal pre-payment features for example)
2. More perks (freebies)
3. More innovation (like stripped down products without privleges for people who simply want the lowest rate)
Melanie