How to Calculate Your BMO Mortgage Payment

Jessica Lyn
by Jessica Lyn November 9, 2016 / No Comments

If you’re considering a mortgage from BMO Bank of Montreal, you’re probably curious as to what your expected mortgage payment will be. To calculate your mortgage payment, you’ll first have to know the asking price of the home you wish to purchase. Then you must decide on your down payment amount, the amortization period of your mortgage, and the frequency of payments (monthly, bi-weekly, etc). Lastly, you’ll need your BMO mortgage rate.

BMO’s Mortgage Rates

Bank of Montreal’s mortgage rates are comparable to the other large banks but they are not the lowest ones on the market. Keep in mind that posted rates are typically much higher than the actual mortgage rate you will be quoted. That is, if you were to call BMO you would probably be offered a mortgage rate far below their posted rate, if you’re in a good financial position. To find the best mortgage rate on the market, however, you need to expand your search to financial institutions beyond banks. This can be easily done through the help of a mortgage broker or through conducting your own comparison shopping.

You can compare how different mortgage rates will affect your payments by using RateHub’s BMO Bank of Montreal mortgage calculator. By using a payment calculator, you’ll be able to compare your estimated payments using BMO’s posted rates against the rates offered by other providers. You’ll also be able to determine which factors you can change to alter your mortgage payment. For example, you can see how different down payment amount will decrease your mortgage payments or how different rates increase/decrease your mortgage payment.

How to get the best mortgage rate

While using a mortgage calculator, you’ll realize just how large of an impact the mortgage rate has on your payments. By getting the best mortgage rate, you’ll significantly reduce your payments and the total amount of interest paid over the life of your mortgage. Now, you might be curious as to how exactly you can get the lowest mortgage rate. Many people believe they’ll receive the best mortgage rate from their current banking provider, but this isn’t necessarily true. The best ways to get a low rate is by conducting your own comparison shopping or enlisting the help of a mortgage broker to rate shop on your behalf.

Comparison shopping

To conduct your own rate shopping, you will have to contact the providers you wish to get rates from. Each provider will then pull your credit score and ask for other information to determine whether you qualify for a mortgage and provide you with a mortgage rate. Comparison shopping is very time consuming and labour intensive, as you have to fill out multiple mortgage applications and allocate time to speak to different mortgage representatives. It’s likely you won’t be able to compare mortgage offerings from many providers; realistically, you’ll only be comparing rates from a small subset of potential providers. This will reduce the chances of being able to secure the lowest mortgage rate on the market.

Mortgage broker

A mortgage broker serves as an intermediary between lenders and borrowers helping borrowers secure a low mortgage rate. They do this through conducting rate comparison shopping to find the best rate and by leveraging their mortgage volumes passing on discounts to their customers. By using a mortgage broker, you’ll be exposed to their vast industry knowledge, and a wide variety of lenders and products. You’ll also have increased flexibility when scheduling a meeting with your mortgage broker as they operate beyond the typical bank hours. Most importantly, you’ll receive the lowest mortgage rate for no cost as mortgage broker services are free.

Now that you know all the keys to success in securing the lowest mortgage rate, implement your new found knowledge to calculate your mortgage payment. A mortgage payment calculator will help you through the process and guide you to a low mortgage payment.

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Flickr: André Carrotflower