BMO Mortgage Review for 2024

Looking to purchase a home? The first step in the home-buying process for most people is securing a mortgage. Whether you're a first-time homebuyer or thinking about switching your mortgage provider or refinancing, BMO Mortgage offers a range of options that will be right for you.

BMO customers benefit from quick pre-approval and the longest mortgage rate guarantee from any major bank in Canada. BMO makes home buying easier. In this BMO Mortgage review, we explore their offerings to help you make the right decision.

BMO Mortgage Review

BMO was established in 1817 as the Montreal Bank making it one of Canada's oldest banks. With over 12 million customers, it has established itself as a trustworthy financial institution.

Whether you're a first-time homebuyer or searching for your next property, BMO offers a streamlined and hassle-free mortgages. Their experienced Mortgage Specialists are available to assist you at every step of the process, providing guidance and support to ensure a smooth transaction whether you're buying or refinancing an existing mortgage.

Borrowers enjoy great flexibility between Mortgage Cash Accounts that let them borrow from their pre-paid funds and skip a payment options for dry months.

Before we continue, let’s weigh the pros and cons of a mortgage loan from BMO.

What types of mortgages are available from BMO

Here’s a look at the different types of mortgages available at BMO.

Fixed Rates Mortgage

A fixed mortgage with BMO is an ideal option for first-time home buyers looking to get pre-approved before they start looking for a house. The fixed-rate means you are protected from rising interest rates for the duration of your first term. Amortization terms of up to 25 years are available.

• Fixed Rate Closed, Convertible Fixed Rate and Open Fixed Rate mortgages are all available
• Rates on Fixed Rate Closed Mortgages are available under BMO’s 6.70% Prime Rate (at the time of writing in April 2023)

Variable Rate Mortgage

If you are comfortable with changing interest rates, you could opt for the variable mortgage option. If rates drop you’ll save.

• A 3-year open term or a 5-year closed term is available.
• Payments remain the same, but what you pay towards the principal changes with the prime rate

Homeowner ReadiLine®

This loan combines a traditional mortgage with the flexibility of a line of credit. It is a convenient option for borrowers who want to secure access to future credit when purchasing a home. The amount available on the line of credit increases as the mortgage principal is repaid.

• Borrow up to 80% of the value of your property split between the mortgage and line of credit with Homeowner ReadiLine® 
• Pay it back over 30 years
• Because the line of credit is backed by property, interest rates are often lower than other borrowing options
• No prepayment fees

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What are the eligibility requirements for a BMO mortgage?

To be eligible for a BMO mortgage, you should be a Canadian resident and have proof of employment. BMO, like other lenders, will weigh your credit history, income, down payment and more. Since every borrower is different, speak with an expert at BMO or a mortgage broker to review your situation.

Here are some things to keep in mind when shopping for a mortgage.

Have your documents ready

Here are the documents that may be requested by BMO when you apply for a mortgage

Maintain a good credit score

Lenders like to see borrowers with a solid credit history. You'll need a high credit score to qualify for the best mortgage interest rates. If you know you’ll be applying for a mortgage soon, try to get your credit score into the high 600s for easier access to credit. Borrowers with a credit score under 600 may struggle to get a mortgage from a major bank.

Have a down payment

BMO allows you to make a down payment as low as 5% of the cost of the home. This can still be a serious sum given property prices in Canada. To avoid paying mortgage default insurance, borrowers need to put down at least 20%.

but your down payment will decide the terms of the loan. Hence, if you make a higher down payment, you enjoy favourable loan terms. If the payment is below 20% of the purchase price, you will have to consider mortgage default insurance.

How do you apply for a BMO mortgage?

If you have already applied for pre-approval with BMO, this process is very similar. We recommend first going through the pre-approval process to save time and be sure you are ready to borrow.

1. Research: No matter the type of loan you choose to apply for, do your research. Shop around before deciding to understand the mortgage options available to you. 
2. Contact a mortgage specialist: If you decide a BMO mortgage is right for you, contact a BMO mortgage specialist to explore all the options available to you. They will guide you through the application process and help you understand the terms and fees. Simply head to the website and click on “Talk to an expert” to schedule a call.
3. Submit documents: Next, you need to submit your documents as a part of your mortgage application. You’ll need: 
   • Proof of identity
   • Proof of income and employment 
   • Proof of a down payment
   • Credit history
   • Debts and assets
   • Rental history
   • Signed offer for purchase

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How do I get pre-approved for a mortgage with BMO?

Getting pre-approval for your BMO mortgage with let you confirm your budget before making an offer on a home. BMO has a unique pre-approval process which sets it apart from all the other lenders. Its 130-day mortgage rate guarantee means your rate is locked in for more than four months, irrespective of interest rate hikes. That gives you lots of time to find the right home for you. The application process is simple. Start it over the phone, online or in person. A BMO Mortgage specialist will help you find the best product and rate.

You should hear back from BMO in a day or two about your pre-approval.

We’ll take you through the process below.

On the website, click on “Get pre-approved.”

Provide details about your home-buying plans. If you need a realtor, BMO can help connect you to one.

If you are a BMO customer, the bank should already have your personal details. If not, click “no” and share your personal information to continue.

Start with your personal information here and then provide details about your employment. Once done, you can apply and a BMO will get back to you quickly.

How do BMO payments work?

Repaying your BMO mortgage is easy and convenient. You can set up an auto-pay if you have a BMO Bank account and choose when you want to pay. It could be:

• weekly
• monthly
• bi-weekly
• semi-monthly

Is money tight? BMO offers borrowers a lot of flexibility with the following options:

• Take a Break® Option - skip a month of payments per calendar year
• Family Care® Option - skip up to four payments once per year if you leave your job to care for a newborn or sick family member

How do I contact BMO?

If you are looking for BMO contact information, the table below shows all the contact details.

BMO	Contact details
Phone number	1-866-262-1618
In-person appointment	Inquire at your local BMO branch
Online	Talk to an Expert
Mailing address	800 Rue De La Gauchetière O #5600, Montreal, QC H5A 1K8, Canada

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