TORONTO, ONTARIO — (Marketwire) — 01/18/12 — As part of BMO Financial Group-s ongoing commitment to financial literacy and -Making Money Make Sense- for Canadians, BMO is releasing a financial tip every week in 2012.
BMO-s Tip of the Week:
Choosing a mortgage with a 25 year amortization instead of a 30 year amortization can save thousands in interest costs over the life of a mortgage.
A 25 year amortization ensures that homeowners can pay off their debt faster, have a mortgage burning party sooner and begin taking steps to secure their retirement earlier.
Here is an example of how choosing a 25 year instead of a 30 year amortization can save you more than $70,000:
“For many months, BMO has been urging Canadians to choose a 25-year amortization as a way to significantly reduce the amount of interest paid over the life of the mortgage,” 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.”
Last week BMO Bank of Montreal lowered the rate for its 5 year low-rate 25 year amortization mortgage by 50 basis points to 2.99 per cent. This limited time offer is available only 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. The low-rate mortgage from BMO was named 2011 Mortgage of the Year by Canadian Mortgage Trends.
For more information on BMO-s home financing solutions, please visit: .
BMO-s Financial Tips of the Week:
: Consider investing in a Registered Retirement Savings Plan (RRSP) and take advantage of tax incentives when saving for retirement.
: Secure your retirement by opening a Registered Retirement Savings Plan (RRSP) as early as possible and contribute to it on a regular basis (regardless of the amount).
Contacts:
Media Contacts:
Jessica Park, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596