TORONTO, ONTARIO — (Marketwire) — 01/14/12 — BMO Bank of Montreal is encouraging Canadians to make responsible financing decisions and choose a mortgage with a 25 year amortization.
Canadians have set a record for household debt. According to the Bank of Canada, the debt burden has exceeded levels in the United States and the United Kingdom. The ratio of debt to personal disposable income is now more than 150 per cent, and Bank of Canada Governor Mark Carney has issued a warning to Canadians to be cautious with their spending.
“Canadians must continually examine ways to reduce overall housing costs,” said Katie Archdekin, Head of Mortgage Products, BMO Bank of Montreal. “BMO has been a leader developing products, such as the low-rate mortgage with a maximum 25-year amortization, that we believe are directly relevant to today-s environment and specifically designed to help Canadian consumers manage their debt. In September, BMO urged Canadians to choose a 25-year amortization as a way to significantly reduce the amount of interest paid over the life of the mortgage.”
BMO Bank of Montreal has lowered the rate for its 5 year low-rate 25 year amortization mortgage by 50 basis points to 2.99 per cent. This special rate is available until January 25th, 2012. By getting pre-approved, customers have up to 90 days to search for the home of their dreams and take advantage of a guaranteed low rate that won-t be around forever.
BMO offers the following tips for Canadians to help them reduce mortgage debt and become mortgage free faster:
Consider a shorter amortization:
Make sure you can afford your home, both now and in the future:
Think about the future:
Make a larger down payment:
Make pre-payments when you can:
Think carefully about fixed vs. variable:
Internet Address:
Contacts:
Matt Duffin, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596