Buying my Next Home

Buying your next home is an exciting next step in home ownership, and BMO can help you get there. Whether you’re moving to a new city, downsizing or even buying a home for your children, BMO has custom home financing solutions that suit your unique needs as well as flexible mortgage features that are especially useful when you’re moving.

Financing your new home

Just like when you bought your current home, you can choose from a wide range of mortgage options to find the solution that best meets your needs. However, because you’re probably also selling your current home, you have some additional decisions to make.

In most cases, you’ll be able to use the proceeds from the sale of your current home (that is, the selling price, less repayment of any remaining or outstanding mortgage balances (including any fees payable), less legal costs and real estate commission to provide the down payment for your new home. If you’re “moving up” to a more expensive home, you may need to come up with additional funds to ensure a minimum 5% down payment; or perhaps you want to put down 20%, so you won’t be required to obtain mortgage default insurance.

If you’re moving to a less expensive home, you can use the excess funds to make a larger down payment on the new home (reducing your mortgage costs) or perhaps use the funds to renovate, invest, or take a vacation.

Your existing BMO mortgage also has some special features that can help you get into your new home and even help you to sell your current one:

Portable mortgage option

Transfer your existing fixed mortgage rate, loan balance, and maturity date to your new mortgage.¹

Assumable mortgage

When you are selling your home, a BMO assumable mortgage makes your home more attractive to potential buyers by having them take over your mortgage and its existing rate. In some provinces, you may remain liable under the mortgage assumed by your buyer. BMO Bank of Montreal, however, releases you from any personal liability if your buyer meets our usual credit requirements and if your lawyer has completed the necessary paperwork¹.

Bridge financing

BMO bridge financing can help ensure you have the funds you need to cover the cost of two mortgages when your closing dates don’t coincide. There’s no minimum or maximum amount (subject to being approved), you get competitive rates, and you can make full or partial prepayment at any time without penalty. Choose either a lump-sum personal loan with fixed payments and a lump sum repayment at maturity or a personal demand loan with interest-only payments.

Rate buydown

The Rate Buydown Program lets you offer your purchaser a lower interest rate on their mortgage.* All you do is buy down their mortgage rate for a set period of time².

How we can help

If you’re thinking of buying a new home, be sure to speak with a BMO Mortgage Representative in-branch or meet with a BMO mobile Mortgage Specialist when and where it is convenient for you. He or she will take the time to understand your needs, outline all the options available to you, and help you make the decisions that are right for you and your family. Or, you can begin the pre-approval process online now.

*Usual BMO credit requirements apply; charges may apply
¹ Subject to qualification.
² Only applicable to fixed interest rates. Not applicable to the Low Rate Fixed Closed Mortgage.