MONTREAL, Jan. 13 (UPI) -- The Bank of Montreal has announced the lowest mortgage interest rate in Canadian history -- 2.99 percent for a 5-year fixed mortgage.
It represents a half-percentage point drop from its previous rate and was expected to draw similar levels at the country's other major banks, the Financial Post reported.
The offer is only valid until Jan. 25 and has some restrictions. The mortgages are amortized over 25 years instead of 30 and customers can only make 10 percent additional principal payments per month instead of the usual 20 percent, the bank said.
Katie Archdekin, head of mortgage products at BMO told the Post the historic move was meant to help customers and their debt loads.
"It's not a move driven by competition -- we believe a 25-year amortization is a better choice for more Canadians at this time," she said.
South of the border, U.S. 30-year mortgage rates have also hit a record low of 3.89 percent, the Post said.
