BMO Bank of Montreal Mortgage Rates

Below you will find BMO’s posted 5-year fixed and variable mortgage rates. Use Rates4u.ca comparison chart to evaluate other brokerages and lenders against BMO and ensure you get the best mortgage rate!

BMO mortgage rates Canada overview

The Bank of Montreal (BMO), being one of the Big Five banks, is the fourth-largest bank in Canada and one of the ten largest banks in North America. They boast more than 900 branches, serving upwards of 7 million customers. They offer mortgage products with competitive rates relative to Canada’s other big banks.
BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

BMO Bank OF Montreal

5-YR Variable

1.55%

3-YR Fixed

2.34%

5-YR Fixed

2.39%

10-YR Fixed

4.49%

BMO Fixed-Rate Mortgages

BMO Fixed Rate Mortgage product reduces the risk of future interest rate fluctuations by “locking in” a specific interest rate for the term. This can create peace of mind for most homeowners, making it an appealing mortgage product for most home buyers; if you’re thinking of or arranging a new mortgage for a future or your current home, your fixed interest rate mortgage can be guaranteed up to 120 days before your home’s closing date. If the interest rates go up during that time, you will be guaranteed a lower rate.

TERM LENGTH

BMO RATE

BEST RATE

1-Year Fixed

2-Year Fixed

3-Year Fixed

4-Year Fixed

5-Year Fixed

7-Year Fixed

10-Year Fixed

BMO Variable-Rate Mortgages

The BMO Variable Rate Mortgages provides you with fixed payments over the term of your mortgage; keep in mind, the interest rate will fluctuate with any changes in the bank of Canada prime interest rate. If the bank of Canada prime rate goes down, more of your payment will go towards paying off your principal; while if the bank of Canada prime rate goes up, more of your payment will go towards your mortgage’s interest costs. This is a great financial tool for expecting rates to fall or take advantage of current low mortgage rates. Most times, the BMO variable mortgage is a convertible mortgage that allows you to convert to another term, such as a fixed mortgage at any time. This feature provides you with flexibility and security, as it enables you to convert to a longer closed term should your variable rate mortgage no longer meet your needs.

5-Year Variable

BMO mortgage products

The Bank of Montreal offers a wide range of mortgage options that allow you to choose one that’s best suited to your needs. Below are mortgage products that BMO offers:

BMO mortgages: Open vs. Closed terms

 

BMO mortgages are offered with an option of open, closed, or convertible terms. These are defined in detail below.

 

BMO open mortgages

 

Oper mortgages give you the freedom to make extra payments and even pay down your mortgage in full, anytime without penalties. Open mortgages are associated with higher rates, but you can pay off your mortgage faster to save money on interest payments. If you expect to receive a considerable amount of cash or your income to increase over the term, an open mortgage allows you the flexibility to pay off your debt faster.

 

BMO closed mortgages

 

Closed mortgages, while accompanied by lower interest rates, do not generally allow additional payments. Moreover, there are penalties associated with paying off your mortgage early. They are, however, the more popular of the two due to their lower interest rates.

 

BMO convertible mortgages

 

BMO’s convertible mortgage allows you to have a short-term closed mortgage that can be later converted into a longer fixed-rate term without penalty. The benefit of which is to take advantage of potentially low-interest rates.

 

BMO mortgage rates

 

As with all the rates displayed on Rates4u.ca, BMO mortgage rates are updated every day and can be found above. You can access these rates conveniently, by either filling out an online mortgage application or only reaching out to a BMO mortgage agent over the phone. Working with an agent has the added benefit of obtaining personalized, expert advice, and gaining access to a wide range of mortgage products from various lenders. To get started, connect with an authorized BMO mortgage broker by clicking on one of the BMO mortgage rates above.

 

How to Get a BMO Mortgage

 

BMO mortgage application checklist

 

Once you have started the application process, BMO will ask you questions relating to what you owe and own; some of the expenses relating to the property, such as heating costs, taxes, and condo fees; also whether you will be using the property to generate income. Additional information BMO will require includes:

 

• Your last two years T1 and Notice of Assessment

• A current list of your assets and liabilities

• The confirmation of your down payment may include recent bank statements, a Gift Letter, or RRSP withdrawal confirmations.

• Job letter proving current employment and income, including recent payslips

• Documents are proving additional income such as child tax credit etc.

• The details about the property your buying or currently own, including the MLS listing (if applicable) and any associated bills and taxes (e.g., property taxes, heating costs, and condo fees).

 

More on the Bank of Montreal

 

Established in Canada in 1817, BMO Financial Group serves upwards of 10 million personal, commercial, corporate, and institutional customers globally. Its operating groups share one universal vision: to be the bank that defines excellent customer experience.

 

BMO prepayment charges

 

There are downsides to a fixed-rate mortgage, such as the restriction on paying out your mortgage early. Despite well-thought-out plans, unexpected life events sometimes require a mortgage to be broken and paid out early.

 

Like all of Canada’s Big six banks, BMO fixed-rate mortgage prepayment charges are calculated on the greater of:

 

• The interest rate differential (IRD) or

• Three months’ interest

 

This is based on the difference between the rate the bank could lend at today (the posted rate) and your rate for a term equivalent to the remaining term of your mortgage. The more your rate is above today’s published rates, the higher the IRD charge will be.

 

The Big six banks are notorious for having high— and astronomical— penalties. Always consider this when you are mortgage shopping or ask your mortgage broker; if there is a chance you may need to break your mortgage early, then you may be better off with a fair penalty lender. Or variable-rate mortgage (which charges three months’ interest penalty to break a mortgage early).

 

BMO Prime Rate

 

As of September 19, 2020, BMO ‘s Prime Rate is 2.45%

 

How does BMO set their Prime rate?

 

Each bank or lender determines its Prime rate. Banks in Canada usually look to the target overnight rate or the Policy Interest Rate set by the Bank of Canada (BoC). Similar changes typically follow changes in the target overnight rate in Prime rates. As a result, most banks and lenders in Canada have similar Prime rates.

Best Mortgage Rates In Canada

5-Year Variable Mortgage Rates

1.15%

5 Year Fixed Mortgage Rates

1.64%

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Yes

Pre-approval

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15%

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15%

Lump sum pre-payment

BMO 5 Year Variable-Rate Mortgages

1.55%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

5-Year Variable

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No

Pre-approval

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20%

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20%

Lump sum pre-payment

BMO 3-year Fixed Mortgage Rate

2.14%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

3-Year Fixed

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No

Pre-approval

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20%

Pre-Payments

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20%

Lump sum pre-payment

BMO 5-year Fixed Mortgage Rate

2.39%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

5-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

BMO 10-year Fixed Mortgage Rate

4.49%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

10-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 5 Year Variable High Ratio Mortgage Rate

1.15%

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 3 Year Fixed Mortgage Rate

1.39%

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 5 Year Fixed High Ratio Mortgage Rate

1.64%

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

Citadel 10 Year Fixed Mortgage Rate

2.49%

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No

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

BMO 1-year Fixed Mortgage Rate

2.79%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

1-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 1 Year Fixed Mortgage Rate

1.74%

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1-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

BMO 2-year Fixed Mortgage Rate

2.94%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

2-Year Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 2 Year Fixed Mortgage Rate

1.69%

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2-Year-Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 3 Year Fixed Mortgage Rate

1.39%

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3-Year-Fixed

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment

BMO 4-year Fixed Mortgage Rate

1.99%

BMO Best Mortgage Rates - Rates4u.ca - Best Mortgage Bank Rates

4-Year Fixed

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No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 4 Year Fixed Mortgage Rate

1.74%

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4-Year-Fixed

Dislike_down_hand

No

Pre-approval

finance-13-5

20%

Pre-Payments

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20%

Lump sum pre-payment

Citadel 5 Year Fixed Mortgage Rate

1.64%

citadel-mortgages

5-Year-Fixed

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Yes

Pre-approval

finance-13-5

15%

Pre-Payments

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15%

Lump sum pre-payment