After the Bank of Montreal (BMO) offered a five-year fixed rate of 2.99 per cent, the lowest five-year rate in modern Canadian history, this week’s rate grew and the lowest five-year mortgage was offered by Dominion Lending Centres.
BMO has recently earned an award for the 2011 Mortgage of the Year from Canadian Mortgage Trends. Their mortgage product offered the best innovation, flexibility, and savings for homeowners across Canada.
“We developed the low-rate mortgage because customers were telling us that they wanted to become mortgage-free faster, pay less in total interest, and have the comfort of a fixed interest rate but, above all, they wanted an easy-to-understand, straightforward product,” said Frank Techar, president and CEO of personal and commercial banking Canada.
According to a report by CIBC World Markets Inc., the surge in Canadian borrowing over the last five years has been driven by the most indebted households. Households heavily dependent on borrowing now hold 73 per cent of all household debt in Canada.
“Some 34 per cent of households that have debt are now in the high debt burden category and they account for nearly three-quarters of household debt outstanding,” added Avery Shenfeld, Chief Economist at CIBC. Alberta is among the provinces with the greatest share of high debt-to-income ratios.