BMO offering: 5 year fixed at 2.99%
Let's look at this offer a bit closer:
1. Maximum amortization is 25 years. If you are in a 30year amortization contract right now, the net effect would mean an increased mortgage payment of about $200 per month on a mortgage of $300 000 (at 3.09%)
2. Fully-Closed Terms - This will bar you from any sale or refinance options.
3. Heavy penalties with non-discounted penalty calculations: The non-discounted penalty calculations would typically be 4% of mortgage balance or $12,000 on average (based on a $300,000 mortgage)
4. Lower pre-payment privileges
5. Lower options payment privileges
6. No Home Equity Lines of Credit will be available.