BMO Slashes Market-Leading Five Year Mortgage Rate by 20 Bps to 3.59 Per Cent

TORONTO, ONTARIO, Sep 01 (MARKET WIRE) --
BMO announced today it is decreasing its popular five-year low rate
mortgage from 3.79 per cent to 3.59 per cent(i) effective September 2,
2010.

The move will provide home buyers just the incentive they need to
kick-start the fall house-hunting season with a renewed fervour.

"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. But there's still some uncertainty about where fixed rate
mortgage rates may be headed over the next little while. To provide
homebuyers with comfort and extra motivation, BMO has slashed our market
leading low rate mortgage by 20 basis points. If ever there was a time to
buy, it is now."

To help reduce uncertainty, BMO is advising homebuyers to guarantee their
mortgage rate by getting pre-approved ahead of time.

"Getting pre-approved on your mortgage is a smart move for any
homebuyer," added Nel. "First, it allows you to shop with confidence
knowing your financing is lined up. Second, it secures your mortgage rate
for up to 90 days - if rates increase during that time, you're covered."

The special five-year low rate fixed mortgage:

-- Continues to offer the lowest fixed rate for a five-year closed term at
3.59 per cent
-- Allows customers to repay their mortgage faster with a maximum 25-year
or less amortization
-- Saves homeowners over $60,000 in interest costs compared to leading
competitors' five-year special fixed rate at 3.89 per cent and 35-year
amortization (based on a $200,000 mortgage)

(i)This special discounted rate is not the posted rate of BMO Bank of
Montreal. Rate is subject to change without notice. Offer may be
withdrawn or extended without notice. Mortgage funds must be advanced
within 90 days of the application.

Contacts:
For news media enquiries, please contact:
Matt Duffin
Toronto
416-867-3996
matthew.duffin@bmo.com

Ronald Monet
Montreal
514-877-1873
ronald.monet@bmo.com

Laurie Grant
Vancouver
604-665-7596
laurie.grant@bmo.com
www.bmo.com

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