BMO fixed rate mortgages
Fixed rate mortgages offer predictability in knowing what your mortgage payments will be regardless of interest rate fluctuations. BMO offers fixed rate closed term mortgages in 1, 2, 3, 4, 5, 6, 7, and 10 year terms.
If you plan on making annual prepayments higher than BMO's standard 20% per year, a fixed rate open term mortgage may be right for you. These mortgages are offered in 6 month, 1 year, and 18 year terms.
BMO variable rate mortgages
Variable rate mortgages offer you the opportunity to take advantage of lower interest rates but take on the added risk that your borrowing costs can increase if BMO's prime lending rate rises. If interest rates go up, your mortgage payment will stay the same, but less of it will go towards paying down the principal. BMO currently offers a 3 year open variable rate and a 5 year closed variable rate mortgage.
Other BMO mortgage rates
If you want a short term mortgage with the option to convert to a longer-term mortgage, BMO offers a 6 month convertible fixed rate mortgage. At the end of the 6 month term, you'll have the option of converting to a longer term mortgage.
BMO also offers mortgage rates on 30 year amortization periods for many of their mortgage offerings. These rates are only available to those who do not need mortgage default insurance and have 20% or more in down payment.
If you need to, BMO also allows you to skip mortgages payments. You can skip one monthly payment, up to two bi-weekly payments, or up to four weekly payments per year. When you skip a mortgage payment, your mortgage will continue to accrue interest, which you'll have to pay back on your mortgage. Also, note that skipping mortgage payments is not available on BMO's Smart Fixed mortgages.
If you need to pause making mortgage payments to take care of a newborn baby or sick family member, BMO has a Family Care Option to help. The Family Care Option will allow you to skip up to four consecutive months of mortgage payments (not available on the BMO Smart Fixed mortgage). You’ll continue to accrue interest on the mortgage. Still, this extra flexibility in skipping mortgage payments is a great benefit should you ever need to take extended time off to tend to family matters.
BMO mortgage prepayments
Making prepayments on your mortgage is a great way to become mortgage-free faster and save thousands of dollars in interest charges. With BMO, you can make annual prepayments of up to 20% of the original mortgage principal on all closed term mortgages. On BMO’s Smart Fixed mortgages, the prepayment allowance is 10% annually.
BMO also offers you the flexibility to increase your regularly scheduled mortgage payment. They allow you to increase your payments by up to 20% for closed term mortgages and up to 10% for BMO Smart Fixed mortgages.
Open term mortgages have no prepayment limits. You're free to make as much in prepayments towards your mortgage as you'd like.
BMO Smart Fixed Mortgages
BMO's Smart fixed mortgages offer you a lower interest rate that's guaranteed for the term. Smart fixed mortgages come in 5 and 10 year terms and have amortization periods of 25 years or less.
The lower interest rates, on Smart fixed mortgages, do come with a caveat where your prepayment limits are lower than non-Smart fixed mortgages. BMO's Smart fixed mortgages make sense if you don't anticipate making prepayments during your mortgage term, and you just want a lower monthly payment.
Mortgage Cash Account
The Mortgage Cash Account exists within your mortgage and allows you to re-borrow your prepaid funds, giving you an additional credit option. You can build a Mortgage Cash Account when you make prepayments on your mortgage principal, either through an annual lump sum payment or through payment increases.
When you re-borrow funds in your Mortgage Cash Account, the funds get added to your existing mortgage principal at your current interest rate.
Note that the BMO Mortgage Cash Account isn't available on BMO Smart Fixed Mortgages and requires that you have already made $2,500 in prepayments during your mortgage term.
BMO Homeowner ReadiLine
The BMO Homeowner ReadiLine is a home equity line of credit product that combines both a mortgage and a line of credit into one. If you have at least 20% equity in your home, you can borrow up to 80% of its appraised value. You can split this borrowing capacity into a mortgage portion and a line of credit portion.
The mortgage portion is paid back in regularly scheduled weekly, bi-weekly, semi-monthly, or monthly installments. The line of credit portion is available for you to borrow from and pay back whenever you want, provided you make the interest payments on any outstanding borrowed funds.
BMO Homeowner’s Line of Credit
If you’re looking for a regular home equity line of credit, BMO’s Homeowner’s Line of Credit is a great option. You can borrow up to 65% of the value of your home in the form of a revolving line of credit that's secured by your home.
On the line of credit, you only get charged interest on what you borrow. You can withdraw from the line of credit and pay it back whenever you like, as long as you meet the minimum interest payments on outstanding balances.
You can get pre-approved for a BMO mortgage online by filling out an application. The online application process takes about 20 minutes to complete. BMO will get back to you within two business days regarding the status of your application.
Once you get pre-approved, BMO will hold your interest rate for 130 days, the longest of any of the major Canadian banks. You can also contact your local BMO branch or a BMO mobile mortgage specialist to get pre-approved as well.
BMO mortgage specialists
A BMO mortgage specialist can help you get pre-approved for a BMO mortgage. They can also help you navigate the mortgage process, help with mortgage refinancing, and can help with mortgage renewals. Anything that's mortgage-related, a BMO mortgage specialist can help.
You can meet with a BMO mortgage specialist at a time and location that's convenient for you, or you can speak with one over the phone. Contact your local BMO branch to schedule a meeting with a mortgage specialist. You can also find a mortgage specialist closest to you and book an appointment online.
Renew your BMO mortgage
You can renew your BMO mortgage over the phone or in a branch. The process takes no more than five minutes to complete. You should start considering your mortgage renewal options a few months before the maturity date on your mortgage term. The mortgage renewal period is always a great time to take stock of your current financial situation and explore options for a better mortgage rate.
About BMO Bank of Montreal
The Bank of Montreal (BMO) is Canada's fourth-largest bank. Founded in 1817, BMO is also Canada's oldest bank. BMO provides financial services to more than 7 million customers in personal and commercial banking, capital markets, and wealth management.