The mortgage market was abuzz after Investors Group offered a rate well below the current standard of around three per cent, reports CTV News.
The financial services firm posted a 36-month closed, variable-rate mortgage at 1.99 per cent, which is also well below the 2.99 per cent level that drew sharp criticism from former finance minister Jim Flaherty when BMO first tried it, because he was worried it would trigger a damaging housing bubble.
Peter Veselinovich, vice-president of banking and mortgage operations at Investors Group, said the company decided to post the rate Monday because it had "an abundance of money available for certain terms" which it decided to put out to current and potential clients.
But Veselinovich stressed the rate isn't mean to get people into financial situations they shouldn't be in, or impact the market.
"Our focus is on that overall financial plan and that's the umbrella under which we do everything," he said.
One condition attached to the rate is that you can't break the mortgage unless you sell the property for the three-year period.