The Bank of Montreal announced yesterday that they would be dropping their five-year fixed mortgage rate to 2.99 per cent, the lowest rate offered by a chartered bank in Canada — ever.
It comes with a couple of hitches though. “[L]ump sum payments are limited to 10 per cent of the principal each year. The mortgage is also based on a 25-year amortization period.”see more
Wow, 5 years 2.99%. THIS IS big news…lowest 5 year interest in recorded time! What does this mean? It means you should go out and refinance all your Real Estate for as much as possible for as long as possible…NEVER BEFORE HAS THE COSTS OF BORROWING BEEN SOOOOO LOW.
Here is a history of interest rates since 1935.
1935 – 5.50%
1945 – 4.50%
1955 – 4.50%
1965 - 6.00%
1975 – 9.75%
1985 – 10.00%
For the record..1989 – rates as high as 21% wow…times have changed.
1995 - 7.50%
2005 - 6.00%
2012 – 2.99%
The real estate values are higher but with the lower interest rates it makes it easier to finance your dream. As to the future, the rates can still go lower to help keep the market going and hopefully we will never see the high rates of the 80′s again.
With lots of money available and interest rates so low, you have to buy or refinance now. It just makes sense to do so.
