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By: Robert Clancy General News

Mortgage news and update on mortgage discount rates for the week of March 12th.

If you were watching the news last week you would have seen the stories running on Bank Of Montreal’s new 5 year fixed rate offering of 2.99%. This was the second time in three months that BMO have come out with an aggressive marketing campaign to drive business to their doors. From a mortgage broker perspective this type of aggressive marketing from a lender is good because it gets allot of media attention which ripples out to the public and get the phones ringing.
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Today’s Interest Rates

In todays Mortgage Financing Market mortgage rates are changing constantly. Today mortgages rates are based on so many different variables, it is impossible for an adviser to give a true rate quote without actually reviewing the borrower’s application first. For example, is the mortgage High Ratio (less then 20% down) or conventional (20% or more down)?, is the mortgage a refinance an investment purchase or a transfer?, how is the credit score and how long is the amortization?. In the past one rate quote generally fitted all. This is no longer the case. The rates you see quoted on this website are potentially the best discount rates you can get however they are subject to change based on information above. Do yourself a favour and do not get caught up in the on line rate quote game. It is misleading and all they are trying to do is get you in the door. If you are looking for a general quote upfront then do your home work and ask the correct questions. Let the advisor know the property type, is it a purchase or a refinance, is it an investment property or personal residence, how much down payment or equity in the property (high ratio or conventional), disclose your income type such as salary, self employed or commission.

No Frill Mortgages are mortgage that can offer 10 to 20 point lower then the general discount mortgages however they come with restrictions. For example a borrower can loose their annual prepayment privileges, there can be higher penalty cost to break the mortgage within the term of the mortgage or a clause where the borrower is not able to get out of the mortgage unless they sale the home. Be careful of these mortgages. I am not saying they are all bad but you just need to be aware of the conditions before you sign. Remember it is not all about the rate. Yes you deserve and are entitled to a vey competitive rate but you also want an excellent product that fits your needs and will help you pay down your mortgage quicker and work for you through the life of the mortgage

BANK RATES	TERM	OUR RATES
2.89	1-YEAR	3.44
2.84	2-YEAR	3.44
3.39	3-YEAR	3.54
3.89	4-YEAR	3.59
5.34	5-YEAR	3.29
5.30	7-YEAR	3.89
6.10	10-YEAR	3.89
4.99	Variable (3yr-closed)	2.70
4.99	Variable (5yr-closed)	2.45
4.99	Variable(Open)	3.99

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Mortgage news and update on mortgage discount rates for the week of March 12th.

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