Bank of Montreal (BMO) is a Canadian giant that offers highly competitive rates.
If you want to purchase your first home, a second property, or even renew a current mortgage, BMO comes with innovative solutions.
Let’s check out the best BMO mortgage rates!
Most Affordable Options With BMO Mortgage Rates
BMO offers plenty of mortgage options, depending on your needs. Here are the best BMO mortgage rates.
- The best 3-year fixed mortgage rate is 2.92% APR
- The best 5-year fixed mortgage rate is 3.11% APR
- BMO prime rate is 2.45% for variable contracts
All of the mortgage rates above require a 20% down payment and 20% lumpsum. You can also use the BMO mortgage calculator in order to estimate your future payments, based on your personal circumstances.
All you need to do is insert the purchase price of your property, the down payment, amortization period, and finally, the mortgage rate.
Furthermore, the rates above apply only when the amortization is under 25 years. For amortization over 25 years, BMO offers a special APR of 3.02% for a 3-year fixed mortgage rate.
Who Is Eligible?
BMO requires its applicants to be Canadian residents and be the age of majority in your province.
Pros And Cons Of Each
The fixed mortgage rates are beneficial because you will pay a fixed amount for the entire mortgage term. This means that you have protection against rising rates. BMO also offers accelerated payment options for fixed mortgage rates so that you can finish your repayments sooner.
If this does not appeal to you, you can alternatively choose variable mortgage rates. You need to contact one of their experts to find out more information about this option.
Generally, the mortgage rate will move with the prime rate, and you can pay off your debt quicker if the prime rate falls.
You can also change the variable rate to a fixed one during your term, so you have the option to switch if it is not advantageous to you anymore. Also, the variable mortgage rate has the benefit of choosing accelerated payment options, too.
The main disadvantage of a fixed mortgage rate is that it might become higher than the variable rate, depending on the market fluctuations. With a variable rate, on the other hand, you have a changing rate, based on the current market prices.
As a result, fixed and variable mortgages have both advantages and disadvantages.
Variable rates are more flexible, and if the rates decrease, it means that you can pay off your loan much quicker.
Additionally, you can switch to fixed rates at any time, but you will have to pay a fee for the transition. The fixed-rate means that you know exactly what you will pay during your term, and it might protect you if the market price rises.
However, if the rates drop, it means that you will overpay.
How To Apply
First of all, you need to establish how much you can afford. You can do so by using this calculator. Then, you need to decide which mortgage option suits you best, whether you want to choose a fixed or variable rate, amortization periods.
Next, you need to apply for a pre-approval. The benefits of a pre-approval is that you will retain the pre-approved rates for up to 130 days, protecting you against rising rates; additionally, you will get to know exactly how much you can afford.
You need to provide evidence regarding your liabilities and assets, such as debt, credit cards, and other financial data, but also information regarding other assets you own, such as bank accounts, investments, boats, vehicles, and other properties.
Lastly, you need to have a valid Canadian ID and employment information. The mortgage pre-approval application can be completed here.
All in all, choosing the best mortgage rate for your new property is easier with BMO. They offer highly competitive rates and provide different mortgage options for you to choose from.
Their specialists are also ready to help you out if you are unsure what to choose. It is important to access their calculators and decide which mortgage option suits you best, then you can contact BMO in order to close a deal.