BMO Mortgages review

Is BMO good for mortgages?

BMO mortgages are suitable for first-time homebuyers, existing homeowners and those looking to refinance. Working with one of Canada’s Big Banks, you get experienced professional service covering everything from mortgage pre-approval to closing the deal on your financing. BMO‘s mortgage interest rates can run on the high side. But it occasionally offers special rates that are much more competitive.

What are BMO mortgage interest rates?

BMO mortgage interest rates generally fall between 5.16% – 10.03%. As of the time of writing, variable rate mortgages start at 6.97% and fixed rate mortgages start at 5.16%.

The average mortgage rate in Canada for a 5-year fixed or variable home loan falls around 5.51%-7.39%. BMO‘s rates fall within this range unless you get an open fixed rate mortgage, which generally comes with rates above 9.8%.

What are the benefits of getting a BMO mortgage?

• Special rates. BMO sometimes offers special low rates on fixed- and variable-rate mortgages. These rates put BMO in line with other mortgage providers.
• Long rate guarantee. At 130 days, BMO‘s rate protection guarantee is the longest of any major bank in Canada.
• Get pre-approved online. Easily apply for mortgage pre-approval online in less than 10 minutes.
• Ways to repay your mortgage faster. BMO offers accelerated ways to chip away at your mortgage faster without any prepayment penalties. You can increase your mortgage payments each year, make lump sum annual payments and increase your payment frequency.
• Flexible payment schedule. Choose between monthly, bi-weekly or weekly mortgage payments.
• Established lender. As one of Canada’s Big Five banks, BMO has many years of experience in the mortgages industry. It offers a full suite of banking products (including chequing, savings and investment accounts) and loan solutions for all your financial needs.
• Online and in-person support. You can apply for pre-approval online. but with branch locations all across Canada, it’s relatively easy to get in-person service when you need it.

What should I watch out for?

• Non-competitive rates. BMO‘s special rates are competitive, but its regular mortgage rates are on the high side compared to other providers.
• Potentially lengthy pre-approval. Applying for mortgage pre-approval online is fast, but it could take a day or two to hear back about the results.
• Not available for bad credit borrowers. To qualify for a BMO mortgage, it’s recommended that you have a credit score of 600 (fair) or better.
• Might require an in-person visit. You can get pre-approved for a BMO mortgage online, but you might need to visit a local branch to complete the process.

How to get a BMO mortgage

To get a BMO mortgage plan, you can apply for BMO mortgage pre-approval online or by visiting a local branch. You’ll find out within a day or two what you’re eligible to receive. After which, schedule an appointment to meet with a BMO mortgage specialist and complete the application process.

Eligibility requirements

• Be at least the age of majority in your province or territory (18 or 19)
• Be a Canadian citizen or resident
• Have a credit score of 600 or higher (recommended)
• Meet minimum income requirements (varies based on the amount you’re applying for)
• Down payment of at least 5% (20% recommended)

Required documentation

• List of liabilities such as loans and credit cards balances
• List of assets such as investments, vehicles, real estate and bank account deposits (be ready to provide branch locations and account numbers)
• Valid Canadian ID like a driver’s license or passport. Additional ID may be required.
• Employment information on a recent pay stub, letter of employment. If you’re self-employed, provide T1 tax slips from the last two years.
• Property information including listing details and your Purchase and Sale Agreement(s) with all schedules and waivers.

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Related: Learn more about mortgages in Canada