BMO Car Loans review
Get flexible terms and access to preferred interest rates with auto financing from BMO, one of Canada's oldest banks.
Borrow $7,500 or more at fixed or variable interest rates.
Max. Loan Amount
Min. Credit Score
If you’re looking for an auto loan, a BMO car loan is an option to consider if you have a strong credit score and already bank with BMO. Weigh the pros and cons below.
Pros of BMO car loans
- Competitive interest rates. As one of Canada’s Big Five banks, BMO can offer competitive interest rates.
- Fixed vs variable. You’ll have the choice between a fixed or variable interest rate.
- Flexible payments. Choose between weekly, bi-weekly, semi-monthly or monthly payments.
- Loan amount. Minimum loan amount is $7,500 with no specified maximum.
- Loan term. Loan terms can range between 3 years - 8 years.
- Skip payments. You can skip a month’s payment twice a year maximum.
- No prepayment penalties. If you want to pay your loan off early, BMO will not charge fees.
Cons of BMO car loans
- Interest rate is not specified. Car loan interest rates depend on several factors, such as credit score, loan term, down payment and more. However, for illustration purposes only, BMO states in its car loan calculator that average car loan interest rates are between 6% and 8%.
- Need to apply through a dealership. In order to get a BMO car loan, you would have to visit a dealership and let them know you’d like to apply for a BMO auto loan. Before going to a dealership, you might want to find out first what kind of rate and loan term you can negotiate for by getting a pre-approved car loan.
- Inconvenient application process overall. Not only will you have to visit a dealership, but you might have a more difficult time comparing rates. Do not apply on the spot if this is the first offer you have, because you may miss out on better offers.
- Credit history will be inspected. BMO considers credit history as one of the most important factors to look at.
- Changing payments. You will need to call or visit a BMO branch if you want to make changes to your car loan payments, such as payment frequency, payment date and payment deferral.
Do I qualify for a BMO auto loan?
Below are some common eligibility requirements when applying for a car loan at a bank:
- Be a Canadian resident
- Be the age of majority in your province
- Good to excellent credit score
- Must not have been declined credit within the last six months
- Haven’t declared bankruptcy in the last several years
Compare BMO car loans to other auto loan options
It’s always a good idea to shop around for car loans to make sure you’re getting a good deal. Below is a list of reputable Canadian car loan providers. Once you’ve compared your options and decided on the best fit for you, click the “Go to site” button to get a quote.
How to apply for a BMO car loan
To apply for a BMO car loan, follow these steps:
- Research and find the car you want first.
- Visit a dealership and let them know you want a BMO car loan.
- Apply for the car loan through the dealership. BMO will work with the dealership to process your application.
- Get approved and finalize your application.
Documents you’ll need to provide the dealership
- Government-issued photo ID
- Proof of employment, such as letter from your employer, recent pay stubs or your T4
Why should I consider getting auto financing through 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.
- 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 weekly, bi-weekly, semi-monthly or monthly payments, or pay off everything in one go. It’s up to you.
Is it safe to get a BMO car loan?
As one of Canada’s oldest banks, BMO is generally considered a very safe financial institution. However, there have been rare reports of security issues. 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 stated that immediate steps were taken to protect customers’ data. BMO also guaranteed that it would return 100% of any money lost by clients as a result of the hack.
BMO offers personal banking customers a 100% Electronic Banking Guarantee, which provides a complete reimbursement of unauthorized withdrawals from their accounts via online or mobile banking. Customers must take certain security precautions to be eligible for coverage. Also, deposits held in BMO accounts are insured up to $100,000 per customer by the Canada Deposit Insurance Corporation (CDIC).
Modern security methods are used to guard customers’ data and money including:
- Strong encryption technology
- Automatic logout from online banking after 10 minutes of inactivity
- Firewall protection
- Digital certificates issues by trusted third parties to verify the authenticity of BMO’s website
Car loan monthly calculatorUse our calculator to find out how much you may have to pay each month on a BMO car loan
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If you are thinking about buying a car, BMO is a decent option for an auto loan because it can offer competitive interest rates. However, you will need to go through a dealership to find out what your interest rate will be. Before visiting a dealership to get a BMO car loan, it may be a good idea to already have information on what interest rate and loan term other lenders have pre-approved you for so that you have more bargaining power.
You can learn more about car loans in our detailed guide.