Bank of Montreal Mortgage Rates

BMO mortgage rates overview

The Bank of Montreal (BMO) offers an extensive range of mortgage options that allow combinations of variable and fixed rates, with open, closed, and convertible terms. Mortgages come in a variety of shapes and sizes. So whether you want to make a large down payment or a small one, pay off your mortgage at any time or make additional payments without penalty, or try out a short-term mortgage before committing to a long-term fixed rate, there are many BMO mortgage rates available to suit your needs.

BMO mortgage rates come with an option of open, closed, or convertible terms, all three of which are defined in detail below.

An open mortgage gives you the freedom to make extra payments, any time without penalties. You can pay off your mortgage faster as a result and save money on interest payments. If you expect your income to increase over the mortgage term, an open mortgage allows you to pay off your debt faster. However, you can expect higher interest rates than with a closed mortgage because of the inherent flexibility.

A closed mortgage has lower interest rates, but does not generally allow additional payments without penalties. Closed mortgages are more popular, however, because they are generally accompanied by lower interest rates.

A convertible mortgage is a short-term closed mortgage that allows you to convert to a longer fixed rate term without penalty, possibly to take advantage of low interest rates.

BMO outlines the features and suitability of their open, closed and convertible mortgage options, which are summarized below:

• Open 6-month, 1-year, and 18-year
  Features:
  • Maximum flexibility
  • Prepay in full or in part at any time with no prepayment charge
  • Change to another term at any time without charge
  Suitability:
  • Thinking of selling your home
  • Want to prepay more than 20% of your mortgage amount
  • Believe rates will decline
• Convertible 6-month
  Features:
  • Convert to a closed term of 1 year or longer at any time, without charge
  • Mortgage prepayments
  Suitability:
  • Want to keep your options open
  • Want lower rates than an open mortgage of the same term
• Closed 1 to 7 years, and 10-year
  Features:
  • Interest rate and payments are fixed for the term you choose
  • Mortgage Prepayments
  Suitability:
  • Want to budget with certainty
  • Want a lower rate than an open mortgage of the same term
• Closed 5-year
  Features:
  • Interest rate and payments are fixed for the term you choose
  • Mortgage prepayments
  Suitability:
  • Want to budget with certainty
  • Want lower rates than a fixed rate closed mortgage of the same term
  • Want a simple, easy to understand mortgage with a low rate

In addition to the breakdown provided above, BMO employs a number of online tools to aid your purchase decision, such as a 'First-Time Home Buying from A to Z' Podcast, a mortgage terms glossary, and a 'First Home Essentials' checklist.

Now that you are familiar with BMO mortgage rates, compare them with those of other lenders and brokers to ensure you have best mortgage interest rate

Accessing BMO mortgage rates

BMO mortgage rates are updated every day on its website. You can access these rates conveniently by either filling out an online mortgage application or simply speaking with a BMO mortgage agent over the phone at 1-877-225-5266. To get started, connect with an authorized BMO mortgage broker.

BMO mortgage pre-approval

It takes approximately 20 minutes to complete BMO's online mortgage application. Upon submitting the application, you will be given a unique Loan Application Number and Personal Identification Number that you can use to check the status of your mortgage pre-approval.

BMO mortgage application checklist

The following outlines the sort of information you should have on hand to fill out the BMO mortgage application and obtain your BMO mortgage rate:

• Your monthly income (before taxes)
• Your monthly housing expenses or rent
• The value of any vehicles, properties, investments, or savings you may have
• The balances and monthly payments of your mortgage (including property taxes), credit cards/lines of credit or loans
• Financial information for your joint applicant, if applicable

More on the Bank of Montreal

Established in 1817 and based in Canada, BMO Financial Group serves more than 10 million personal, commercial, corporate and institutional North American and international customers. Its operating groups share one vision: to be the bank that defines great customer experience.