Bank of Montreal (BMO) personal loans and lines of credit review
Our verdict
Choose a fixed or variable rate and tailor a repayment schedule to suit your needs with BMO personal loans.
BMO personal loans start at $2,000, come with fixed or variable rates, and have repayment terms ranging from 1 - 5 years. Flexible repayment options are available, and you can provide collateral to secure a lower interest rate. BMO also offers a line of credit with a variable interest rate, providing convenient access to funds as and when you need.
When you borrow from BMO, you can get competitive interest rates and the peace of mind of dealing with a trusted major bank. But you'll need good to excellent credit to qualify, so borrowers with bad credit will need to look elsewhere.
Best for: Borrowers with strong credit.
Pros
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Fixed or variable rates
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Competitive interest rates
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Secure your loan for a lower rate
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Major bank
Cons
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Must have good to excellent credit
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Strict eligibility criteria
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Can't apply for a personal loan online
What is BMO?
BMO, more formally known as the Bank of Montreal, is one of Canada’s Big Five banks.
BMO is also the eighth-largest bank in North America in terms of assets, and it serves 13 million customers worldwide including 8 million in Canada. It offers a full range of personal and business banking products and services, such as chequing and savings accounts, credit cards, mortgages and personal loans.
Is BMO legitimate?
Absolutely. Founded in 1817, BMO is the oldest bank in Canada and one of the nation’s largest banks. It is regulated by the Office of the Superintendent of Financial Institutions.
Finder Awards
In 2023, we completed the Finder: Personal Loan Consumer Satisfaction Awards — an annual ranking of personal loan providers in Canada based on customer satisfaction feedback. In 2024, we completed the Finder: Personal Loans Best-in-Class Awards, which recognizes the best personal loan brands in Canada based on our data-driven methodology.
Winner: Best-in-Class
BMO was awarded the Winner award in the Best Personal Loan Traditional Lender (National) category in the Finder: Personal Loans Best-in-Class Awards 2024.
Customer Satisfaction
BMO was included in the Finder: Personal Loans Customer Satisfaction Awards 2023. Its overall customer satisfaction score was 70.96%.
Features of Bank of Montreal loans
| Feature | Personal loan | Personal line of credit |
|---|---|---|
| Loan amount | From $2,000 | From $2,000 |
| Loan term | 1 - 5 years | Open |
| APR | Varies | Varies |
| Serviced provinces | All | All |
| Eligibility requirements |
|
|
What are the interest rates of BMO loans and lines of credit?
BMO personal loan interest rates are calculated based on its prime rate of 7.2%. The rate you get for your loan will depend on factors such as:
- Your credit score and repayment history
- Your income
- Your debt-to-income ratio
- Your loan amount
- Whether you take out a secured or unsecured loan
What we like about BMO loans
- Fixed or variable rate. You can choose either a fixed or variable interest rate with a BMO personal loan, depending on your preference.
- Flexible repayments. You can choose a loan payment frequency that suits your income — monthly, semi-monthly, bi-weekly or weekly.
- Secured or unsecured loans. If you want to qualify for a lower rate, you can offer an asset such as your home as collateral for the loan.
- Defer payments. If you are unable to make an on-time payment, you can defer up to one month’s payment on a BMO personal loan twice in a calendar year.
- Use the money how you want. You can use a BMO personal loan to pay for home improvements, buy a car, consolidate debt and more.
- Large branch network. BMO has a network of hundreds of branches across the country, which is good news if you prefer face-to-face banking.
What to watch out for
- You need good to excellent credit. BMO does not offer personal loans or lines of credit to borrowers with poor credit. So if you don’t have a good to excellent credit score, consider other options. Learn more about the best bad credit loans.
- Nonsufficient funds (NSF) fee. If you don’t have enough money in your bank account when a loan payment is due, you’ll be hit with an NSF fee.
- APR range not listed online. BMO doesn’t list its loan rate range online, so you’ll need to apply to find out what rate you can qualify for.
- Can’t apply online. You can’t apply for a BMO personal loan online and will instead need to make an appointment at a branch.
Alternatives to BMO personal loans
What do BMO reviews say?
Online customer reviews for BMO are largely negative, as they are for other major Canadian banks. Complaints mention factors such as poor customer service, long phone wait times and issues with online banking.
Summary of BMO reviews
| Feature | Details |
|---|---|
| Trustpilot | 1.2 out of 5 stars, based on 906 BMO reviews |
| BMO review score varies depending on branch location | |
| BBB accreditation | No |
| BBB rating | F |
| BBB reviews | 1.13 out of 5 stars, based on 223 BMO reviews |
| Reviews verified as of | March 11, 2024 |
What are Bank of Montreal’s loans?
There are two main loan options to consider from BMO:
- Personal loan. A BMO personal loan lets you borrow a lump sum to cover just about any expense — a kitchen renovation, a vacation, a new car, bills and more. You then repay the loan over a period of 1 - 5 years, and you can tailor a repayment plan to suit your income frequency. BMO personal loan rates can be either fixed or variable, and you can secure your loan with an asset (for example your home) to get a lower rate.
- Personal line of credit. BMO offers an unsecured line of credit that provides flexible access to funds when you need them. You can access credit at any time up to an approved limit, and you only pay interest on the money you use. You then pay back the greater of 2% of the outstanding balance or $50 each month, while interest-only payments are also available. BMO lines of credit have variable interest rates and are designed to be used whenever you need to cover unexpected expenses.
Other loans offered by BMO include home equity loans, home equity lines of credit, RRSP loans, car loans and student loans.
Can I use a BMO personal loan for debt consolidation?
Yes, you can use a BMO personal loan to consolidate debt. If you want to apply for a BMO consolidation loan, BMO will need to see details of the different debt accounts you want to pay off, such as credit card balances and monthly statements.
Can I get BMO loans with bad credit?
No. You’ll typically need good to excellent credit to qualify for a BMO personal loan or line of credit, so a bad credit score will make it difficult to get approved. You may need to consider applying with an alternative lender that offers bad credit loans.
What are the eligibility requirements of BMO loans?
BMO doesn’t provide a detailed list of loan eligibility requirements online. However, generally, it requires the following:
- Be a Canadian citizen or permanent resident
- Be 18 years of age or older, or the age of majority in your province or territory
- Have a good to excellent credit score
- Receive a steady income that will allow you to afford loan repayments
- Haven’t been declined credit in the last six months
- Haven’t declared bankruptcy in the last seven years
How to get a BMO loan
If you’re already a BMO customer, you can apply for a personal line of credit by logging in to online banking. Answer a few quick questions about your borrowing needs to complete an application. If you’re a new customer, book an appointment to speak with a lending expert at a BMO branch.
If you want to apply for a personal loan, book an appointment at your nearest BMO branch. You can do this online by providing your contact information and scheduling a time.
You’ll also need to take to your appointment a government-issued photo ID along with proof of income and employment.
Bottom line
If you need a loan and you have good to excellent credit, a BMO personal loan is worth checking out. Banks generally offer the lowest interest rates on personal loans, and you can discuss your options by booking an appointment at your nearest BMO branch.
However, make sure you compare personal loans from a range of lenders to find the loan that’s right for you.
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