A car loan from one of Canada’s oldest banks is a flexible way to pay for a new vehicle. Compare features, rates, fees and more.
If you are looking for an auto or car loan, BMO may be a great choice if you have good credit or already bank with BMO. Although it does not offer specific auto loans, its personal loans can be flexible and can be used for any purchase, including vehicles. However, BMO also has a large number of poor reviews, and finding what interest rate to expect can be difficult without a lengthy application process. Weigh up the pros and cons below.
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What types of loans does BMO offer?
BMO (Bank of Montreal) is one of Canada’s largest banks. It offers a wide range of lending options, for $5,000 or more at fixed or variable interest rates. BMO does not offer car loans specifically, but it does issue personal loans that can be used for cars or other large purchases.
- Personal loans can be used for cars, home improvements, travel or other expenses.
- Choose from a fixed or variable interest rate.
- Get access to preferred interest rates by securing the loan with personal assets.
- The repayment period can range from 1 to 5 years or longer.
Why should I consider taking out a loan with BMO?
BMO has won millions of loyal customers. Here’s why:
- Its award-winning customer service. BMO has won awards for its commitment to strong customer relationships.
- It’s convenient. Access your account online 24/7 or stop in at one of 900 branches across Canada.
- Banks don’t get more reliable than this. As one of the world’s oldest banks, BMO has paid dividends continuously since 1829.
- Better rates are available. If you have personal assets to secure your car loan, you can gain access to preferred interest rates.
- You have flexibility. Make monthly payments or pay off everything in one go. It’s up to you.
Where does BMO fall short?
Like every business, it has its shortcomings. Here are a few:
- You’ll have to apply to find out your interest rate. BMO doesn’t publish this information, so be prepared for an application process first.
- Your overall financial health will impact your loan. Canada’s big banks look at the big picture, like your debt-to-income ratio, when deciding financing terms.
- A line of credit may be cheaper. Depending on your personal finances, using a line of credit may get you a better rate.
- Your dealer might be even cheaper than that. Many manufacturers and dealers offer their own loans at lower rates than BMO has.
How much will it cost me to borrow with BMO?
Unfortunately, it’s not possible to tell how much it will cost you to borrow with BMO. That’s because BMO does not disclose its fixed or variable interest rates. The only way to know for sure is to call the bank directly or visit your local dealership for special offers. As one of the five “big banks” in Canada, BMO is a financial powerhouse. Although it is one of the oldest and most trusted financial institutions in the world (and the oldest bank in Canada), BMO has its fair share of negative reviews. Many customers complain that BMO has poor customer service as a result of busy phone lines and unhelpful branch associates. In fact, a visit to Trustpilot at the time of writing shows that 83% of BMO’s reviews are ranked as bad, or 1/5, while only 4% are ranked as good, or 5/5. However, before you panic, remember that all five of Canada’s big banks have similarly poor review ratings. RBC is 88% bad, CIBC is 92% bad and TD is 81% bad. BMO is not accredited by BBB, where it has an average 1-star rating from customer reviews and a BBB rating of F.
What do borrowers say about BMO?
As one of the five “big banks” in Canada, BMO is a financial powerhouse. Although it is one of the oldest and most trusted financial institutions in the world (and the oldest bank in Canada), BMO has its fair share of negative reviews.
Many customers complain that BMO has poor customer service as a result of busy phone lines and unhelpful branch associates. In fact, a visit to Trustpilot at the time of writing shows that 83% of BMO’s reviews are ranked as bad, or 1/5, while only 4% are ranked as good, or 5/5.
However, before you panic, remember that all five of Canada’s big banks have similarly poor review ratings. RBC is 88% bad, CIBC is 92% bad and TD is 81% bad. BMO is not accredited by BBB, where it has an average 1-star rating from customer reviews and a BBB rating of F.
Are BMO loans safe?
As one of Canada’s oldest institutions, BMO loans are generally regarded as safe. However, they are not completely so. In 2018, CBC reported up to 50,000 BMO customers were placed at risk when their personal information was hacked.
As soon as it was notified of the data breach, BMO claims that it took immediate steps to protect its customers’ data. BMO also guarantees that it will return 100 percent of any money lost by clients as a result of the hack.
Generally, BMO and all Canadian banks are extremely cautious and put considerable effort into fighting financial risks.
How to apply for a loan with BMO
Applying for a car loan with BMO is easy and you have a number of options:
- At the dealership. Complete the car loan application at your local car dealership, along with any other documentation. The lending specialist will review your financial information and see if you qualify for a loan.
- At your local bank. Because BMO car loans are personal loans through the bank, you can also apply by visiting the branch nearest you.
- Go online. Using BMO’s website, you can apply immediately.
Applying for a car loan can require that you meet strict eligibility requirements:
- You must be a Canadian citizen or a landed immigrant resident of Canada.
- You cannot have declared bankruptcy within the last six years.
- You will need information like your monthly income and expenses, as well as any balances on existing loans like mortgages.
- If you are self-employed, you must have operated your business for a minimum of three years.
- You must be of legal age.
- Finally, you must not have been declined credit within the last six months.
More about BMO
BMO, or the Bank of Montreal, was originally founded on June 23, 1817. As Canada’s oldest bank, its official Institution Number is 001. With more than 900 branches and seven million customers, it is the fourth largest bank in the nation. Although its corporate headquarters are located in Montreal, the chairman, president and most senior executives work in its Toronto offices.
If you are thinking about buying a new car, BMO is a strong option for an auto loan. You will need to reach out to the bank directly for more information on interest rates.
Looking for a business loan instead? Check out our guide to business loans.