BMO reduces five-year mortgage rate

Part of downward trend with Canadian banks

BMO has become the first major bank to lower its five-year borrowing rate below three per cent.

The bank will be offering a five-year rate of 2.99 percent, down from 3.40 per cent, it says in a press release today.

This reduction appears to be a trend as other Canadian banks have also cut their rates recently. TD Bank reduced its four-year fixed-rate mortgage to 2.97 per cent this month while Scotiabank lowered its rates to a four-year special at 2.94 per cent.