BMO cuts five-year rates to tempt wary buyers

BMO Bank of Montreal said it’s cutting rates on its five-year fixed rate mortgage to tempt wary consumers back into the market during the fall home buying season.

The bank has cut the rate from 3.79% to 3.59% from Sept. 2. BMO has cut fixed rates 12 times since April.

Canada’s housing market has cooled sharply following last year’s boom that helped pull the overall economy out of recession. Housing sales dropped 6.8% in July from the previous month and were down 30% from the previous year, according to the latest statistics from the Canadian Real Estate Association.

“It’s a great time to buy a home,” said Martin Nel, vice-president, lending and deposit products, BMO Bank of Montreal. “The housing market has cooled a bit recently, giving buyers an advantage over motivated sellers.”

Royal Bank of Canada last week cut its five-year fixed-rate mortgage to 5.59%.