BNN: Manulife follows BMO as mortgage war heats up

Lenders are driving mortgage rates lower, despite Finance Minister Jim Flaherty's warnings of the impact that low rates could have on consumer debt levels and the housing market.

Manulife Bank (MFC-T 15.25 0.00 0.00%) has just begun promoting a new five-year fixed mortgage rate of 2.89 percent, down from 3.09 percent, about two weeks after Bank of Montreal (BMO-T 63.77 0.00 0.00%) drew public comment from Finance Minister Jim Flaherty by lowering its advertised five-year rate to 2.99 percent from 3.09 percent.