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BMO’s 2.99% 5-Year Fixed Sets Bank Record

Rate-dropLater today, BMO is reportedly announcing the lowest advertised 5-year fixed rate ever for a Canadian bank.

It’s a 2-week promotion at 2.99%. Official announcement to follow.

This previously unthinkable rate has been eclipsed only by a handful of other mortgage companies. Those lenders (AGF Trust and Lendwise) made sub-3% rates available to brokers for brief spurts in 2011.

For those considering the Bank of Montreal (BMO) Low-Rate mortgage, be cognizant of its restrictions. Once you close, you cannot discharge this mortgage for five years unless due to a bona fide sale of the property.

Although, BMO does allow you to renew early, refinance to another BMO mortgage, or transfer your mortgage to a new property.

Here’s our original story from March 2010 with all the pros and cons: BMO Low-Rate Mortgage.

Update:  Here is BMO’s official 2.99% 5-year fixed announcement.