How are BMO mortgage rates calculated?


Quick Answer

Bank of Montreal mortgage rates are calculated using a number of criteria, including the type of loan, the length of the loan and any market conditions. The credit history and financial information of the borrower can also play a role in calculating BMO mortgage rates.

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Full Answer

The interest rates offered by BMO for mortgages can vary based on whether or not the loan is an open rate, a convertible rate or a closed rate. As of March 2015, open rates can begin at between 6.3 percent and 8.5 percent, while convertible rates are at 6 percent. Closed rates can be obtained for as low as 2.79 percent.

BMO offers a number of different mortgage options based on fixed rates and variable rates. Fixed rates remain the same for the life of the loan, resulting in the payments remaining the same. Variable rates can change as the prime rate for BMO's mortgages changes, but the payment amount remains the same. The difference in variable rates is that the length of time required to pay off the mortgage can be extended if interest rates increase.

For exact mortgage rates, BMO does recommend contact with a BMO mortgage specialist. The pre-approval process can begin online, or consumers can book an appointment with a specialist in their local area.

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