BMO

Big Banks
Written By David Pipe
 

Review of BMO Mortgages

As the 8th largest bank in North America by assets, BMO (Bank of Montreal) provides personal and commercial banking, global markets, and investment banking services to 13 million customers.

BMO provides tailored financial solutions that meet the needs of diverse clients, including first-time buyers, new Canadians, and investors. Through services like their HELOC and rental program, BMO offers flexible options for individuals and businesses.

 
BMO (Bank of Montreal)
 
 

Today’s Lowest Rates from BMO

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Ideal Client

BMO is best suited for first-time buyers, investors, and new Canadians. With a focus on supporting various financial goals, BMO provides strategic loan services and investment opportunities despite the potential of high penalties.

 

Special Features:

Loan Services (HELOC)

Rental Program

Wide Lending Area

 

BMO offers a range of appealing features to suit various borrowing needs. They provide Home Equity Lines of Credit (HELOC), allowing homeowners to access funds based on their home equity. Additionally, their rental program supports investors looking to finance rental properties, making it easier to grow a real estate portfolio. With a wide lending area, this lender is accessible to borrowers across Canada. Keep in mind that every lender has their strengths and considerations, so it’s important to assess these options carefully to find the best fit for your financial goals.

 

Downsides:

High Penalties

 

When considering this lender, it's important to be aware of a few downsides. One key point is that they tend to have higher prepayment penalties compared to some other lenders. This means that if you want to pay off your mortgage early or make extra payments, you could face significant fees. Understanding this aspect can help you make a more informed decision about your mortgage options and ensure that it aligns with your long-term financial goals.

 

Best Suited For:

 

First Time Buyers

Investors

New Canadians

 
 

10 Things You Need to Know About BMO Mortgages

BMO recently returned to the mortgage broker channel and is working hard to bring their unique offering to Canadians. They offer a surprisingly competitive and flexible set of options that can be a perfect fit for the right borrower. Here are 10 standout features that make BMO mortgages worth considering:

1. 130-Day Rate Guarantee – One of the Longest in the Industry

BMO offers a generous 130-day rate hold on pre-approvals and purchases — longer than the typical 90-120 days at most lenders. This gives buyers extra breathing room to shop confidently and lock in a rate without rushing their purchase decision.

2. 20/20 Prepayment Privileges on Most Products

BMO allows borrowers to increase their regular payments by 20% and make lump-sum payments of up to 20% of the original loan amount annually — helping you pay off your mortgage faster without penalty. Even better, there’s no limit to the number of lump-sum payments you can make in a year.

3. Bridge Loans Available for Purchase Timing Flexibility

BMO offers short-term bridge financing for buyers who need to close on a new property before the sale of their current one — a useful tool in today’s tight housing market. These are only available when purchase financing is arranged through BMO.

4. BMO Smart Fixed Mortgage Option

The BMO Smart Fixed Mortgage offers a lower rate option with some limitations (like reduced prepayment privileges), but it can be ideal for borrowers focused purely on rate and stability. This can be especially attractive for buyers who know they'll stay in their home for the full term.

5. Skip-A-Payment Flexibility

For standard fixed and variable-rate mortgages, BMO allows you to skip one monthly payment per year (with approval), offering a little breathing room during tight months.

6. Cashback up to 7.5% on New Mortgages

BMO sometimes offers generous cashback options — up to 7.5% of the mortgage amount (to a max of $50,000) — which can help cover closing costs, moving expenses, or furniture purchases. This is one of the largest cashback offerings in the Canadian market.

7. Support for Borrowed Down Payments

Through default insurers, BMO supports programs allowing buyers to borrow up to 9.99% of their down payment. This is great for first-time buyers who have strong income but haven’t saved enough for a full down payment.

8. Flexible Qualification for Self-Employed Borrowers

BMO has a clear and documented path for self-employed borrowers with both traditional and alternative documentation options. Professionals like doctors and lawyers may also qualify under simplified guidelines.

9. Wide Range of Property Types Eligible

Whether you're buying a vacation property, second home, or 1- to 4-unit rental, even Air BnB, BMO’s programs are designed to work with a variety of property types — including purchase plus improvements.

10. Blend and Extend Options

When rates drop mid-term, BMO allows borrowers to blend their current rate with a new term. This can offer savings without the full cost of breaking a mortgage early — a valuable strategy in fluctuating markets.

Final Thoughts:

Whether you’re buying your first home, upgrading, or refinancing, BMO has a well-rounded mortgage offering that combines competitive rates with some thoughtful features. As always, your best bet is to work with a mortgage broker who can compare multiple lenders (including BMO) and tailor a solution to your goals.

 
 
 
 
David Pipe

David Pipe helps business owners, investors, and first-time homebuyers build and protect family wealth with creative financing and tax-efficient life insurance solutions. He is an award-winning mortgage agent and life insurance agent in Ontario. David believes education in personal finance and seeking great advice is the best way to reach our financial goals, and he is focused on sharing his knowledge with others. He lives in Guelph, Ontario with his wife Kate Pipe and their triplets (and english bulldog Myrtle).

https://www.wealthtrack.ca/about#about-david-pipe
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