Bank of Montreal is the latest bank in Canada to hike its mortgage rates. It now joins the number of other big Canadian banks that have raised its rates. This is in response to the increasing bond yields.
The 5-year fixed mortgage rate of the Bank of Montreal has been raised to 5.19 per cent from the existing 5.14 per cent. The rates of all the fixed rate mortgages that BMO offers have been increased.
The 1-year mortgage rate has risen to 3.44 per cent from 3.29 per cent. The 10-year mortgage rose from 6.3 percent to 6.5 percent. From the increase in the mortgage rates, it is clearly evident that the borrowing cost has risen.
The home buyers will get a chance to negotiate the rates in order to fix the mortgage rate lower than the rate that the bank has posted.
At present, the Bank of Canada and the US Federal Reserve have not changed their respective mortgage rates. It is expected that they will also soon follow suit. The BMI has made changes to the mortgage rates on the changes made by other leading banks like Royal Bank of Canada and the National Bank of Canada.