Financial goals
What are you looking to do?
Renovate my home
Create your dream space and boost your home's value with a home renovation or make your home greener with eco-friendly upgrades. Let’s explore how a BMO mortgage can help finance your reno.
Refinance your mortgage
- Conventional mortgage refinance1As you pay down your mortgage you build equity in your home. Refinancing lets you borrow up to 80% of your home’s current value minus how much you still owe on your property. For example, if your home is currently worth $300,000, you may be able to borrow up to $240,000 which is 80% of your home value. Keep in mind that in order to refinance your mortgage you’ll need to submit an application to your bank to prove your financial standing and determine the amount you can borrow. Learn more about mortgage refinancing
- Convert your mortgage to a Homeowner ReadiLine®A BMO Homeowner ReadiLine2 combines a mortgage with the flexibility of a revolving line of credit, providing flexible access to fund your home renovation project. With responsible use and regular payments, you can manage your borrowing as needed. Learn more about a Homeowner ReadiLine®
Add a Homeowner’s Line of Credit
A stand-alone revolving line of credit that allows you to borrow up to 65% of your home’s value. Consider a BMO Homeowner’s Line of Credit3 if you want to avoid prepayment penalties or don’t want to alter your existing mortgage. Learn more about a Homeowner’s Line of Credit
Manage my debt
If you find yourself juggling multiple-high interest payments, then simplifying your finances and reducing interest costs could be something to consider. Managing your debt effectively can help you stay in control of your finances.
How it works
Interest rates on mortgages and secured lines of credit are typically lower than credit card and unsecured loan rates. If it makes sense for your individual situation, consolidating your debts into a lower-interest payment could help reduce your monthly payments and make repayments more manageable. However, keep in mind that extending your repayment period may increase the total interest paid over time.
Start by understanding what you owe
Take a detailed look at your finances and outstanding debt. Add up your total debt to get a sense of how much you might need to pay off and how much you want to borrow. Knowing how much you owe can help you explore ways to reduce costs and simplify your payments.
Explore refinancing to unlock your home equity and improve cash flow
As you pay off your mortgage you build home equity, which may give you options to better support your goals. Refinancing lets you borrow up to 80% of your home’s current value minus how much you still owe on your property. For example, if your home is currently worth $300,000, you can borrow up to $240,000 which is 80% of your home value. To calculate your equity:
- Find out your home’s current value (not the original purchase price)
- Find your mortgage balance (how much you still owe)
- Subtract your mortgage balance from your home’s current value
Keep in mind that in order to refinance your mortgage you’ll need to submit an application to your bank to prove your financial standing and determine the amount you can borrow.
Make a big purchase
The cost of major purchases or unexpected expenses can sometimes lead to financial stress. If your financial situation allows for it, you may be able to use your home’s equity to ensure you’re prepared for unexpected financial surprises.
Refinance your mortgage
- Conventional mortgage refinance1As you pay down your mortgage you build equity in your home. Refinancing lets you borrow up to 80% of your home’s current value minus how much you still owe on your property. For example, if your home is currently worth $300,000, you may be able to borrow up to $240,000 which is 80% of your home value. Keep in mind that in order to refinance your mortgage you’ll need to submit an application to your bank to prove your financial standing and determine the amount you can borrow. Learn more about mortgage refinancing
- Convert your mortgage to a Homeowner ReadiLine®A BMO Homeowner ReadiLine2 combines a mortgage with the flexibility of a revolving line of credit, providing flexible access to fund big purchases or emergencies. With responsible use and regular payments, you can manage your borrowing as needed. Learn more about a Homeowner ReadiLine®
Add a Homeowner’s Line of Credit
A stand-alone revolving line of credit that allows you to borrow up to 65% of your home’s value. Consider a BMO Homeowner’s Line of Credit3 if you want to avoid prepayment penalties or don’t want to alter your existing mortgage. Learn more about a Homeowner’s Line of Credit
Move to a new home
Moving can be a lot of work, but we can help remove the financial stress. You can transfer your existing BMO fixed-rate closed mortgage to your new home and keep your competitive rate without incurring prepayment penalties.4
Take your current mortgage with you
If you have a competitive interest rate and don’t need to borrow additional funds, a BMO Simple Portable Mortgage allows you to transfer the remaining term and existing rate of your current BMO mortgage to a new property without incurring a prepayment charge.
Adjust your mortgage term to borrow additional funds
- Blend & Extend Portable MortgageThis is a great option if you need to borrow additional funds7 to purchase your new home and want to extend your existing term while potentially avoiding a prepayment charge.4
- Blended Portable MortgageThis option will best suit you if you need to borrow additional funds7 to purchase your new home and want to keep your remaining term without incurring a prepayment charge.
Become mortgage-free faster
Most lenders offer options to pay-off your mortgage sooner, but BMO customers have access to market leading features that help you manage your mortgage and pay it off faster.
What are my options?
- Make a lump sum payment8A lump sum payment is a one-time payment you make toward your mortgage, outside of your regular payments. With most BMO mortgages you can make a lump sum payment of up to 20% of the original mortgage amount (minimum of $100) once per calendar year with no prepayment charge.
- Increase your payment amount8If budget allows, consider increasing your regularly scheduled payment amount. Even a small change can go a long way toward paying off your principal faster. With most BMO mortgages you can increase your mortgage payment once per calendar year by up to 20% of your current payment amount.Some lenders may only allow you to combine the maximum amounts from the options listed above. At BMO you have the freedom to make a lump sum payment of up to 20% on top of increasing your payment amount by up to 20%, without either option eating into the other. Follow along with our interactive demo to learn how to make extra mortgage payments on BMO Online Banking.
- Pay more frequentlyBy switching from monthly mortgage payments to an accelerated weekly or bi-weekly schedule, you can become mortgage-free faster and save thousands. Access our mortgage renewal calculator to calculate your options.
Mortgage calculator
Use our mortgage payment calculator to estimate how much your payments could be. Calculate interest rates, amortization, prepayment amounts, and more.
How to borrow funds from your Homeowner ReadiLine®
Follow along with our interactive demo to learn how you can borrow funds from your Homeowner ReadiLine®.
Make extra mortgage payments online
Learn how to make extra mortgage payments online and become mortgage-free sooner.
Resources
Helpful articles
Find out how to become mortgage-free faster with these tips. Learn more about accelerated payments, prepayment options, and prepayment charges.
Don’t put your mortgage renewal on autopilot. Learn how to get the most out of your next mortgage term.
Whether you’re buying an eco-friendly home or renovating an existing property, we’re here to support you in transforming your home into a sustainable place to live.
What's the difference between a Homeowner ReadiLine® and a Homeowner Line of Credit?
| Details | Homeowner ReadiLine® | Homeowner Line of Credit |
|---|---|---|
| What is it? | Combines your mortgage with a revolving line of credit | Standalone revolving line of credit |
| Borrowing amount | Up to 80% of your home’s value6 | Up to 65% of your home’s value3 |
| Interest | Only charged on the amount you borrow | Only charged on the amount you borrow |
| Consider if | Your mortgage is up for renewal, or you don't mind altering it mid-term | You don't want to alter your existing mortgage OR Your mortgage is outside of its renewal window and the prepayment penalty might be too high |
Switch your mortgage to BMO
Not a BMO customer yet?
SWITCH TO BMOLooking to save on your mortgage? You’re in the right place. Get a great rate by switching your mortgage to BMO today.
FAQs
Frequently asked questions
Yes it can – and it’s good to keep this in mind. For lines of credit, your interest rate is a variable interest rate and will change without advance notice whenever BMO's prime lending rate changes or otherwise with notice in accordance with the terms of your Homeowner's Line of Credit agreement.
Yes, switching to BMO is simple and comes with great benefits. The BMO Homeowner ReadiLine® combines a mortgage with the flexibility of a revolving line of credit, so that you can have access to funds whenever you need them.5
If you have a BMO chequing account, the most efficient way to access your funds is via BMO Online or Mobile Banking. Follow along with our interactive demo to learn how you can access your funds online. You can also access your line of credit at a BMO branch or ATM, with line of credit cheques, or through telephone banking.
BMO’s Homeowner Line of Credit uses your home as collateral, which makes it a standalone secured line of credit. Once you’ve been approved, you can use the funds as needed, generally at a lower rate than most other lending products.
BMO’s Homeowner ReadiLine® combines a mortgage with a secured line of credit. This secured line of credit portion of your Homeowner ReadiLine® works very similarly to the standalone Homeowner Line of Credit, with the main difference being that your available credit limit increases as you pay down your mortgage.
The best time to refinance will depend on your unique financial situation. You might consider refinancing your mortgage when you’re close to the end of your term (instead of renewing), but you can refinance at any time. Keep in mind, if you refinance outside of your renewal window, you’ll likely have to pay a prepayment penalty, but depending on the length of your term it might still be worth it.
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1 Subject to BMO’s standard lending criteria. Additional costs, such as appraisal and legal fees, may apply.
2 Maximum of 65% in line of credit.
3 The combined line of credit limit under any prior mortgage and a Homeowner Line of Credit cannot exceed 65% of the value of your property.
4 Subject to meeting BMO’s usual lending criteria. Appraisal and other fees may apply. Please consult your lending agreement(s).
5 Conditions apply. Account needs to be in good standing for customers to access line of credit. Convenient access to funds, anytime, up to your credit limit through online banking, a BMO branch, or Line of Credit cheques. Applications and the amount you can borrow are subject to meeting BMO’s usual credit criteria.
6 Any amount you borrow under a Homeowner ReadiLine® in excess of 65% of the value of your property must be in an amortizing installment. The Homeowner ReadiLine® must be registered in first priority on title on your property.
7 The rate on the additional funds you borrow is a combination of your existing and current mortgage rates.
8 Accelerated payment details vary for a BMO Smart Fixed Mortgage, please consult your lending agreement(s) or contact a BMO representative.