Best Mortgage Lenders in Canada in 2024 – Bank of Montreal (BMO)
BMO, or Bank of Montreal, stands as the eighth-largest bank in North America, catering to a vast customer base of over 12 million individuals. Since its inception in 1817, BMO has played a pivotal role in the financial landscape, earning the distinction of being the oldest bank in the country. Renowned for its comprehensive suite of financial services, BMO operates as a one-stop-shop, providing a spectrum of offerings ranging from personal to investment banking.
The bank’s commitment to serving diverse financial needs is evident in its extensive array of services. BMO serves as a trusted partner for individuals, offering wealth management solutions tailored for those with high net worth. Additionally, the bank extends its expertise to corporations through capital market services, addressing the financial requirements of various companies.
With a rich history spanning over centuries, BMO has not only withstood the test of time but has also evolved to become a cornerstone of North America’s banking sector, exemplifying reliability, longevity, and a commitment to delivering comprehensive financial solutions.
Types of Mortgages
BMO offers two main mortgage options – fixed and variable mortgage rates – plus the Homeowner ReadiLines as their exclusive HELOC product.
Let’s look at all the mortgage interest rates they currently have.
Fixed Rate Closed Mortgage – 1-10 Year term with 6.29% – 7.49% rates
Variable Rate Mortgage – 3-5 Year term with 6.70% – 8.40% rates
Convertible Fixed-Rate Mortgage – 6 Months with a 6.59% rate. Convertible Fixed Rate Mortgage have the same benefits as a closed mortgage but it can be changed to a fixed term of one year or longer, free of prepayment charge.
Open Fixed-Rate Mortgage – 6 Months to 1 Year term with 9.15% rate.
Special Rates (Limited Time Offer) – 3-5 Years with 4.89%-6.50% rate.
Note: These are the rates at the day of writing. The rates can change any time, so please check the updated rates directly from BMO’s website.
Key Features
BMO has a lot of special offers for mortgages or any other financial services that they have. There is always a limited-time offer going on, so you better keep an eye on their website to catch some of these offers.
Here are some of the best deals that you can get from them.
Smart Fixed Rate Mortgage
Settling down with a fixed rate mortgage is best for those who want to budget with certainty. BMO’s Smart Fixed Rate Mortgage will allow you to lock in at a lower rate for 5 to 10 years. You can also accelerate your payment by increasing it to 10% or make a lump sum payment of 10% each year.
To be eligible for this, you must:
live in the property (“owner-occupied”). Rental properties are not eligible
have at least 600 credit score
have less than 39% of Gross Debt Service Ratio
have less than 44% of Total Debt Service Ratio
130 Day Lock In Period
This is the longest of any major bank in Canada. The 130-day lock-in period will give you a lot of leeways to shop for better offers, gather necessary documents, or prepare your finances.
Up to $4200 Cash Back
This is a limited-time offer scaling from a mortgage value of $100,000 ($1100 cash back) to $1 million ($4200 cash back).
Homeowner ReadiLine
This is BMO’s HELOC program. It lets you borrow up to 80% of your home’s value by withdrawing the funds from your house’s equity (the amount you have paid so far that went to the principal). The interest rate is lower than other line of credit options since it is secured by your home.
Approval Process
You can pre-qualify for any financial product through their website and get the result in a few minutes. This involves answering a few questions and a no-impact credit check.
Preapproval can also be done through the website. To apply, you must be:
a Canadian resident
at the age of the majority in your province or territory
applying for a home you plan to live in
employed for at least 2 years
After submitting the necessary information, you will get the result in less than 10 minutes.
You can also schedule a discovery call with an agent to discuss your options. Just click the “Talk to an Expert” that you can see on most of their mortgage-related pages.
Verdict
This bank’s transparency is highlighted on its website, where you can get practically all of the information you need. The site’s rate information is regularly updated to reflect the most recent value.
Despite having higher prime rates than its competitors, BMO today produces competitive interest rates. The minor difference may be considered a minimal price to pay for this bank’s rock-solid dependability. Overall, BMO is a safe bet for all types of buyers.
