As you have seen in the media, BMO is offering a 5 year fixed rate of 2.99%. This mortgage is a no-frills mortgage product which means they have taken away all of the flexibility of the mortgage to offer you this low rate. This mortgage only allows you 10% pre-payment options (when the standard is 20%) and you cannot pay off this mortgage unless through a bona fide sale.
What the hype should be about is that Mortgage Brokers have many great lenders offering lower rates than 2.99% for 5 years with all of the normal mortgage frills. With these mortgages some of the features include full pre-payment options, portability & it's assumable.
It's worth it to check out your options and don't let the media lead you astray. You may think taking a no-frill product won't affect you, but a lot can change in 5 years so why not take a great rate and have all the mortgage features available to you if you need them.
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