Before it waded back into the market with deeply discounted mortgage rates last week, Bank of Montreal (BMO-T58.960.530.91%) sought to give policy makers in Ottawa a heads-up that it was about to shake up the housing market again.

The bank had also spent months amassing a stockpile of cheap funding in the bond market to backstop the discounted mortgages, a strategy designed to ensure the cut-rate loans would not lose the bank money.

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