Written by 6:59 PM Interest Rates • 17 Comments Views: 0

2.99% Back at BMO, for 1 Day

BMOBMO’s 2.99% 5-year fixed special is back, but this time BMO is not heavily advertising it.

According to the BMO reps we talked to, it’s available for “one day only” (Saturday Sept. 22) and applies to BMO’s restrictive Low-Rate mortgage.

The reps said they just found out about the special yesterday and were told to direct people to the branch to apply.

We’re not surprised that BMO isn’t promoting this more. The Department of Finance has warned banks about advertising rock-bottom rates.

Back in May, Finance Minister Jim Flaherty told the Globe & Mail that aggressive rate sales were “something we discouraged.”

He said he told the banks, “My expectation is that you will not compete to the bottom on interest rates.” Doing so could over-stoke the national debt fire, suggests the Department of Finance.

But officials have done little to stop bank competitors from pushing ultra-low rates.

As we speak, numerous other sources (brokers, credit unions and wholesale lenders) offer that same 2.99% rate, with fewer restrictions. The government’s distaste for aggressive rate promotion is therefore working in favour of bank rivals.

Rob McLister, CMT

Visited 1 times, 1 visit(s) today

Last modified: April 28, 2014

Canada’s preeminent mortgage information resource.