Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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As the fixed rates continue to remain at an elevated level – compared to historical low bond yields – the banks are finding other ways to be socially responsible.

BMO today started offering 3.49% for 5 years fixed for 25 years amortized mortgages. It is doubtful – with 4 years fixed rate hovering around 3% – how many borrowers will really feel interested to get that promotion. They sure would get the businesses of those who does not shop but not many of that kind exists now days.

This rate announcement will at least serve one purpose – to project a socially responsible bank who is trying to work on the Canadian debt load. They have picked up the hint left by TD chief – who wanted Canada to go back to 25 years amortization root.

One good news is that the banks are now predicting a relatively calm interest rate forecast till Q1 0f 2013.