Mar 27, 2014
By Scott Walker
The Bank of Montreal may be kicking of a mortgage battle.
BMO is slashing its five-year fixed-rate mortgage to 2.99% from 3.49%. The last time BMO set its rate below three per cent, former Finance Minister Jim Flaherty publicly told the bank he disapproved of the rate and discouraged other big banks from following its lead.
Flaherty was worried it would thrown fuel on an already-overheated real estate market in Toronto and Vancouver.
TD and Scotiabank have posted rates below three per cent, but for four-year terms.
New finance minister Joe Oliver says he will be keeping an eye on the mortgage markets.