Save up to $500 in closing costs and enjoy exclusive rate discounts as a BMO Customer.†
Adjustable rate mortgage
An adjustable rate mortgage1 (ARM) may help you save money in the short term. Generally, an ARM has lower monthly principal and interest payments during the initial fixed interest rate period.2 Later, your interest rate will be variable and will adjust semi-annually if the index changes. An ARM may be the best way to go if you don't plan to live in your home for a long time.
Lower payments early on
Your monthly principal and interest payment may be less during the initial fixed interest rate period for an ARM versus a fixed rate mortgage.
Fixed-to-variable adjustment
Once the loan converts to a variable rate, interest rates and payments may vary.2
Initial fixed period
Your initial interest rate is fixed for a short period of time, after which it will convert to a variable rate and adjust semi-annually during the life of your loan if the index changes.2
Pay with convenience
Get the convenience of automatic mortgage payments with Auto Pay3 from your BMO checking account.
Get a 0.125% rate discount with Auto Pay from your BMO personal checking account4
5 steps to home ownership
Pre-qualification
You need to:
- Speak with a BMO Mortgage Banker
- Share information about your income, savings, investments, credit history and debts
BMO will:
- Inform you of the amount of the loan for which you prequalify and provide you a prequalification letter
- Discuss products, interest rate options and closing costs
- Identify the product(s) that best fits your financial needs and goals
- Schedule an appointment for the application interview
- Identify required documentation and the amount of the deposit needed to process your application
Tips: When you choose BMO for your mortgage financing needs, you'll have the resources of an experienced financial lender, as well as the assistance of a professional Mortgage Banker who will walk you through each step and help you understand the process.5
Application
You need to:
- Provide basic information to your banker including your social security number, your income, loan amount, property address and value of the property to be mortgaged
- Select a product
- Receive and review the Loan Estimate sent by BMO. The Loan Estimate provides our good faith estimate of the interest rate on the loan, your monthly payments, closing costs and other items that help you decide if this loan is right for you.
- Complete your mortgage application. This will include information about your employment history, incoming savings, investments, debts and the property you wish to purchase or refinance.
- Confirm your preferred method for communication and receipt of documentation.
- Review the Consumer Finanial Protetion Bureau (CFPB) Your Home Loan Took Kit that we send you. Review and sign the application documentation.
- Provide your intent to proceed and submit your application and application deposit. Your intent to proceed must be received before your application deposit will be accepted.
BMO will:
- Determine who should be contacted to gain access to the property and the best time to schedule the appointment with the appraiser
- Identify any additional documentation that may be required to render a credit decision
- Deliver the complete application package to the BMO mortgage application processing team
Tips: While we will provide you with a Loan Estimate based on preliminary information, we will need additional information to further process your request5, including:
- Realtor and attorney contact information
- Documentation about your income such as salary, earnings and wages (for example W-2s, alimony, investment income, social security)
- Most recent two years’ federal income tax returns
- Verification of employment if employed
- Most recent three months’ bank and investment statements — all pages
- Purchase contract and any and all addendums for the property you are buying
Processing
BMO will:
- Identify any additional documentation needed to process the loan and render a credit decision— confirm how and when it will be received
- Order the appraisal, flood certification, title commitment and private mortgage insurance certificate. The appraisal will be completed by a state-licensed and/or certified appraiser
- Send you a copy of the appraisal
Tips: Once the appraisal is complete, the application can move into the next step of the process. Ensure that your appraisal appointment is scheduled promptly and kept as agreed. Promptly provide BMO with any additional documentation required to render a credit decision.5
Underwriting
You need to:
- Secure and provide evidence of homeowners (or “hazard”) insurance and flood insurance (if required) coverage for the property being purchased or refinanced
- Review, sign and return any applicable documents or disclosures that are provided to you by BMO
BMO will:
- Review all employment, income, savings, investments and debt
- Compare information on the application to paystubs, W-2 forms, tax returns, bank and investment statements, etc. to determine that sufficient income and funds are available for down payment, closing costs and reserves
- Review the credit report to determine outstanding debt, payment history and your current credit score
- Review the appraisal to confirm the market value and determine if the property represents sufficient collateral for the loan
- Determine that qualification requirements are met to approve the loan
- Deliver the Commitment Letter and identify any closing conditions, if the loan is approved
- Provide updated regulatory disclosures
Tips: When you receive the Commitment Letter, updated regulatory disclosures if applicable and appraisal, please review these documents. Identify any conditions required for closing. The loan can be scheduled for closing once BMO has received all required information.5
Closing
You need to:
- Attend the closing at the BMO branch or title company as scheduled and sign all mortgage and legal documents
- Provide final funds for closing if required. This information will be detailed in the Closing Disclosure
BMO will:
- Review and confirm all loan terms and closing conditions
- Identify a convenient date, time and location for the closing
- Schedule the closing with the title company
- Order pay-off letters, subordinations, releases, etc. and clear all closing conditions
- Send your Closing Disclosure for your review at least three business days prior to closing
- Prepare and deliver the closing documents to the title company and coordinate final figures for closing; wire the loan proceeds to the title company
- Provide information on final funds needed for closing and the method of payment required
Tips:
- When you attend the closing, bring a legal form of identification (driver’s license, state I.D., passport, etc.) and the necessary final funds in the form of a cashier’s check or secured funds.
- Confirm with your Mortgage Banker or the title company if funds will need to be wired from your bank to the title company's bank.
- Compare the Closing Disclosure to the Loan Estimate.
- Contact your Mortgage Banker in advance of the closing if you have any questions.5
Payment methods
We offer a range of payment options to help you conveniently make your payment on time, every month. Each is safe and secure6 — just choose what's easiest for you:
Auto Pay3 from your BMO checking account- BMO Digital Banking®, 7
- BMO Bank by Phone footnote 8
- In-person at any of more than 600 BMO locations
- By mail
Calculators
Our calculators9 help you compare loans and crunch your numbers.
Calculate how much you’d spend each month on your home with a fixed rate mortgage.
Get a quick estimate of what your initial payments could be with an adjustable rate mortgage.
Know your budget before you start house hunting.
Helpful tips and advice for homebuyers
What is debt-to-income ratio and how does it affect your mortgage application?
Your debt-to-income ratio is one of the most important factors lenders look at when you apply for a mortgage. Learn how to calculate your DTI and get tips on improving it.
Applying for a mortgage? Here are 5 ways to prepare
Feeling intimidated by a mortgage application? Follow these five simple steps to boost your confidence and maybe improve your chances of getting approved.
Closing costs checklist: What you need to know before buying your house
Closing day means closing costs, and these can really add up. Here’s a checklist of closing costs to help you know what to expect and how to budget.
Resources and contact us
Apply online
Start your homebuying journey in just a few clicks.
Find a Mortgage Specialist
Get in touch with one of our expert specialists nearby.
Call us
Get expert insight from our team.
Frequently asked questions
If you expect to stay in your home for a relatively short period of time, consider an Adjustable Rate Mortgage (ARM). In the short term, your interest rate and loan payments during the initial fixed interest rate period generally will be lower. However, once your interest rate converts to a variable interest rate after the initial fixed interest rate period, your interest rate may increase and change annually. Consult with a BMO Mortgage Banker for more information.
Prequalification is a quick analysis of how much loan you can afford based on verbal information you provide to us. It will give you a general idea of the price range you can afford. There are no fees for a BMO prequalification.
Preapproval is a loan commitment based on verified information prior to finding a home. There are no fees to apply for a BMO preapproval. A completed loan application, however, is necessary to receive a preapproval loan commitment.
It is best to schedule a mortgage consultation with one of our Mortgage Bankers.
It depends on how long you expect to own your home. The lower the interest rate, the lower your principal and interest payment. You must consider the monthly savings versus the extra point(s). Discount and interest points may or may not be tax deductible. Please consult your tax advisor to discuss your individual situation.
The Annual Percentage Rate (APR) is the total yearly cost of a mortgage stated as a percentage of the loan amount, which includes such items as the interest rate, private mortgage insurance and loan origination fees (points).
I locked my interest rate, but the Truth in Lending Statement says the annual percentage rate (APR) is higher. Am I getting a different rate?
No. The interest rate for your mortgage note will be the rate you selected when you signed your Price Protection Election Agreement. Unlike the interest rate, the APR includes certain charges and fees to reflect the total cost of the loan on an annual percentage basis. Please see the following question for information regarding the APR.
What is pre-paid interest?
Pre-paid interest is an amount you pay at closing which represents the interest that will accrue between the day your loan closes and the last day of that month. For example, if your loan closes on the 20th day of a 30-day month, at closing, you will pay interest owed for the remaining 10 days of that month.
Pre-paid interest covers the period between the day of your loan closing and your first mortgage payment. For each day between the closing date and the following 1st of the month, you'll pay daily (per diem) interest.
What is the benefit of an extended rate lock for new construction?
An extended rate lock option may be elected when building a new home. Frequently, a new home will not be completed within the standard rate lock period. If this is the case, an extended rate lock may be a smart move for you. BMO provides options offering up to fifteen months of interest rate protection, depending on your product choice.
What is the advantage of having a property tax escrow account with BMO?
Convenience. By having a property tax escrow account with BMO, you can budget by spreading the annual cost of property taxes throughout the year, and BMO will make property tax payments on your behalf and you will not have to worry about missed or late payments.
How can I apply for a BMO mortgage?
There are several convenient ways to apply for a BMO mortgage. Work with a Mortgage Banker who will explain the entire mortgage process, describe typical costs up-front, help find the right mortgage for your needs and guide you through the application process.
S.A.F.E. Act
The Secure and Fair Enforcement (S.A.F.E.) for Mortgage Licensing Act protects consumers. This nationwide licensing and registration system provides accurate, accessible information about lenders and their employees.
BMO Bank N.A. fully complies with the S.A.F.E. Act. Learn more about how the S.A.F.E. Act (PDF, 409 KB) protects you.
For further information regarding your Mortgage Loan Originator or BMO Bank N.A., please visit www.nmlsconsumeraccess.org.
Special offers are subject to change.
footnote dagger details The closing cost discount offer is available on applications received from September 1, 2024, through April 30, 2025. The closing cost discount offer consists of a $500 closing cost discount depending on loan amount. This offer is available subject to the following:
Closing Cost Discount:The closing cost discount may be applied to the purchase or refinance mortgage at closing. It is available for conforming (loans up to $806,500) secured by 1-4 unit homes used as primary residences, second homes, or investment properties.
footnote 1 details Relationship Requirement: If the property is not located in the following locations; Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, Wisconsin, Wyoming, and EL Paso County, Texas (Home Equity Line of Credit is not available in Texas) to be eligible for our real estate secured lending products, you must be a pre-existing BMO customer for at least six months at the time of application; contact a Banker for details. A BMO customer relationship includes any deposit, retirement, small business, secured and unsecured credit, and investment accounts (BMO Alto account are excluded). Not applicable to our Private Bank clients or BMO employees.
footnote 2 details Your initial interest rate is fixed for a short period of time, and then converts to a variable rate that adjusts during the life of your loan. The amount of your payments will change when the interest rate changes. Historical performance of Adjustable Rate Mortgage (ARM) indexes does not predict future performance and is only one factor to consider when choosing a mortgage loan. Certain restrictions and fees may apply.
footnote 3 details Auto Pay means periodic scheduled payments automatically deducted from your BMO checking account, as applicable, to pay the loan. When you sign up for Auto Pay, you authorize the Bank to draw your account for all amounts then due, including any late fees and any other charges. Checking account opening subject to bank approval.
footnote 4 details Auto Pay Interest Rate Discount: To receive a 0.125% rate discount, you must authorize BMO at origination to withdraw your loan payment each month from a BMO consumer checking account. Housing Finance Agency, Federal Housing Administration, Department of Veterans Affairs, and State Bond Program loans are not eligible for the interest rate discount but will receive a $500 closing cost discount if eligible.
footnote 5 details This is an overview of the general steps to the mortgage process. This is not a complete description of the mortgage process, and there may be other requirements that apply. This information is not intended to be tax or legal advice. BMO does not provide tax or legal advice and you should consult your tax or legal advisor for tax and legal advice. The Consumer Financial Protection Bureau offers additional home buying resources. You may visit http://www.consumerfinance.gov/owning-a-home/loan-options/ for more information.
footnote 6 details Visit the BMO Security Center for details.
footnote 7 details Certain conditions and limitations apply. Digital Banking Guarantees apply to personal accounts only and do not apply to commercial or business accounts. Please see the BMO Digital Banking Agreement found at bmo.com/en-us/legal for full details.
footnote 8 details Message and data rates apply. Please contact your wireless carrier for details.
footnote 9 details Calculator is provided by Leadfusion Inc., which is not affiliated with BMO. The calculator provides estimates. We do not guarantee their accuracy or applicability to your circumstances. Results depend on many factors, including the assumptions you provide. Leadfusion may have different privacy and security standards than BMO. Visit its website at www.leadfusion.com to review its privacy policy.
Accounts are subject to approval and are provided in the United States by BMO Bank N.A. Member FDIC.