Canada Mortgage Rate Race Continues as BMO Lowers the Bar a Little Further
08 Mar 2013 , According to PRWeb
After the warning issued by Jim Flaherty, Mortgage Expert Marcus Arkan, CTO of Syndicate Mortgages Shares a Mortgage Broker’s Point of View on BMO’s Controversial Rates
Toronto, Ontario (PRWEB) March 08, 2013
Earlier this week, Bank of Montreal announced further cut down on their five-year fixed mortgage rate from 3.09 to 2.99 percent. According to an article published in the Globe and Mail, Mr. Jim Flaherty has issued a warning over the mortgage war that BMO’s move might ignite. Mr. Marcus Arkan, CTO of Syndicate Mortgage analyzed the possible after-effects of this move and shared his views on the subject.
The new mortgage rate at 2.99 percent is not new to BMO. According to Globe and Mail’s report, the bank started to offer its historic low rate in 2012. However, it was raised back to 3.09 percent just a few months later. Sharing his views on the news, Mr. Arkan said, “BMO has made this move just before the market enters its key-buying season. While the pressure from the policy makers is still there, the market seems to have cooled down since last year’s changes. This may be one of the reasons BMO feels it is still safe to fuel the competition a bit more.”
According to Mario Mendonca, Canaccord Genuity analyst, among the five major banks in Canada, BMO still has the lowest mortgage market share. In February, BMO shared its first Quarter report that showed signs of profit dips for the bank. Based on the report, BMO announced that with slower pace of growth as compared to last year, Canada’s lending was still healthy. After the rate cut announcement, The Star reported that BMO’s senior Vice-president of personal banking in Canada replied to Mr. Flaherty’s unfavorable response by stating that the bank’s objectives are aligned with the government’s efforts.
Speaking of the response from BMO’s competitor, Mr. Arkan stated that unlike last year, other banks might not follow suit. “BMO itself announced that the rate is subject to withdrawal. Since the market is not as hot as it was last year, competitors might not be willing to get into a temporary race,” Mr. Arkan added.
While Mr. Arkan agrees that BMO’s move will invite more buyers into the market, as a mortgage expert, he said he fears that Flaherty will once again tighten the rules to control borrowing and household debt.
Furthermore, Mr. Arkan concluded by revealing that BMO’s rates are only the lowest advertised rates. However, lower walk-in rates are possible after negotiation. For more information, please visit the website http://www.syndicatemortgages.com
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062