Hello Albertans!

I'm from Ontario but I wanted to let my Fellow SCer's from Alberta know about this opportunity. I have no affiliation with this Lender and have never used them. Neither do I have anything particularily against BMO other then this current offer is not for the general public's benefit at all.

My motivation is that the 2.99 mortgage offer that BMO currently is offering has serious restrictions that most people don't understand.
From what I have heard First Calgary is offering the same rate with "normal" conditions. . .no traps.
I always recommend for anyone to seek a mortgage brokers advice - It's Free! (except in bad credit situations)

One of the worst restrictions of the BMO mortgage is you cannot break the 5 year term. Here's why that is a bad thing. . . .

The majority of 5-year fixed mortgage holders break and/or add to their mortgage prior to maturity. There are endless reasons for this, including:
  • upsizing
  • job loss
  • separation/divorce
  • death of an applicant, or
  • refinancing to:
    • get a lower rate
    • get a lower payment
    • make an investment purchase
    • consolidate debt
    • pay for medical expenses
    • fund a child’s education
    • pay for a renovation, or
    • meet personal needs.
To allow for these possibilities, BMO’s Low-Rate mortgage "lets you" refinance and early renew.
The downsides are:
  • BMO may not have the rate, terms or features you desire at the time of refinancing.
  • BMO doesn’t have to offer you its best discretionary rates since it knows you can’t escape before maturity.
  • There are penalties to consider if refinancing. BMO might not be as compelled to negotiate on penalties and fees since you’re a captive customer.
  • BMO is not obligated to early-renew or refinance you if you don’t meet its approval criteria.
For these reasons, having an escape route from your lender can often be essential.

Hope Everyone gets an warm and early spring! Best wishes from Ontario.