BMO launches green mortgage offering with 3.89% fixed five-year rate

Bank of Montreal today unveiled a new mortgage product for Canadians who own an energy efficient home.

It’s the latest in a line of efforts in the Canadian banking industry to reward green homes with rebates and lower rates. The BMO Eco Smart Mortgage offers a 3.89% fixed five-year rate for Canadians who choose energy efficient homes. The regular posted fixed rate for a five year mortgage term from BMO is 5.34%.

Qualification for the Econ Smart Mortgage will be determined by an appraiser for homes that include high-efficiency heating and cooling systems, qualified hot water systems, and high-quality attic insulation or windows and doors, according to a news release by BMO.

Katie Archdekin, head of mortgage products for BMO, said the green mortgage product is designed to encourage homeowners to limit their energy use and thus their cost of owning a home.

“Canadians want to decrease their carbon footprint and recognize that their home is one of the key ways they can do so,” she said.

Energy-saving property owners can also choose from the Royal Bank of Canada Energy Saver Mortgage, which refunds up to $300 on a home-energy related improvement.

The Canadian Mortgage and Housing Corporation’s Green Home program features a 10% refund on the mortgage loan insurance premium and extended amortization periods without surcharge.

Thus far CMHC has given out $3 million in premium refunds through that program. Another product is TD Canada Trust’s Green Mortgage, which offers a rebate of up to 1.5% on the cost of a mortgage with qualified purchases.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?