Quick rate update
2.99% on a 4 year fixed is a great deal right now.
I know BMO is currently advertising a 5 year at 2.99% but it does have some fairly strict restrictions. I posted this in another thread but for those that missed it here they are:
- max amortization 25 years (no exceptions)
- pre-payments capped at 10% and 10% (no exceptions)
- you are not allowed to miss or “skip” payments for any reason (no exceptions)
- only available until Jan 25th
- rate hold only 90 days; if rates go down in that time no float down allowed, must close within 90 days from date of application (not date of approval) (no exceptions)
- rate not available on their Homeowner Readiline (similar to all in one mixed fixed and variable mortgage)
- you are completely locked in until maturity
- only way you can break this mortgage is through moving, dying, refinancing or renewing with them at a similar or higher term (no exceptions)
- when you move, the IRD is so high because of the deep discounting that you have little option but to keep it with them
The lenders offering 2.99% on a 4 year have excellent pre payment options and are not nearly as restrictive.
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