With the Bank of Montreal (BMO) slashing their Canada mortgage rates once more, it may seem like the perfect time for the average family to buy the house they’ve always wanted. But while the best short-term rates can blow competitors out the water, it’s not necessarily the right option for everyone.

The first of all the ‘Big Five’ banks to offer mortgage rates that are 2.99% for five years and 3.99% for 10-year mortgages, BMO is reigniting the war for mortgages that we have seen for many months. With many banks likely to follow suit, where does this leave you?

What’s the big picture?

This is one of the lowest rates that Canada has ever seen. But does it sound too good to be true? The economy is still in a downturn and the worry that analysts have is that we could aggravate our financial system and put everyone at risk by offering prices that might not be feasible as times change.

Thanks to all the dips in prices we have seen in 2012, there has been a rise in the number of house sales. This, thanks to rates like BMO are offering, makes home ownership more affordable to the average family.

On the plus side of these shorter mortgages terms, you can look at your life in three to five year increments and this gives you more flexibility. You never know if children are going to be born or if you might need to move to a new home again so this gives you the chance to reconsider things after a few years.

How important is your mortgage choice?

While it’s obvious that your mortgage is important, picking the right one is crucial. While you may feel that a five-year mortgage is the right option, what happens when you need to re-mortgage? For a family that is looking to settle down, the fact is that a fixed rate longer-term mortgage may well be more fitting for the circumstances.

It’s all about understanding how you see your future, what your plan is moving forward and how you are going to find the best lender. Using a tool to assess your options like a mortgage calculator for Canada , you will be able to see what the terms and rates are looking like for what you are after. Don’t go into it with any disillusions because getting the right mortgage is difficult – but if you can understand your options and know how to work with banks and brokers, then it’s possible to get a great deal.

Should you go direct or play the field?

Finally, you should consider how you should go about getting the mortgage. The whole concept of these new low-interest mortgages is designed to encourage people to go directly to the banks because they think that is where they will find the best deal. While this can be true in some cases, no two scenarios are the same.

Although you can get the chance of a direct deal by going straight to the bank – and cut out broker fees – you could be at a disadvantage. Looking ahead further than five or 10 years? Most families are. So, open yourself up to a market comparison and use a broker to give you advice that is convenient for your needs.