BMO Bank of Montreal is providing an extra incentive to Canadian home owners and prospective buyers contemplating getting into the market this fall. The bank announced Friday its best five-year closed variable mortgage at dropping to 2.25%.

The lowest rate in more than 30 years will be effective September 26, the bank said.

“Lower mortgage rates have played a key role in providing more affordability for home buyers, which has helped turn Canada’s housing markets around from weak levels earlier this year,” said Doug Porter, deputy chief economist, BMO Capital Markets. “We expect a double-digit increase in home sales in 2010, getting us back to near pre-recession levels.”

IE