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Payment Options

For many people, a mortgage is a long-term commitment. In fact, it’s one that can last for up to 35 years. Luckily, there are opportunities for you to pay off your mortgage sooner - and potentially save thousands in interest. BMO provides flexible payment options that will have you debt-free faster without incurring extra charges. Find one that’s right for you.

Mortgage Prepayment

We all want to be mortgage-free faster. BMO has ways to help you. Our flexible prepayment options let you put extra cash towards your mortgage principal without incurring charges1. And by doing so, you can also save thousands of dollars in interest over the lifetime of your mortgage.

The Mortgage Prepayment Privilege


The Mortgage Prepayment Privilege lets you pay down your mortgage faster and can save you thousands of dollars on your mortgage. Here’s how it works.

Increase your mortgage payments (principal and interest)


Increase the amount of your mortgage payment by 20% over the current mortgage payment, or 10% for a Low-Rate Fixed Closed Mortgage, once per calendar year without added charge.

Make lump sum payments


In addition to increasing your mortgage payments, you may prepay in $100 increments each year without added charge, up to:
  • 10% of the original mortgage amount for a Low-Rate Fixed Closed Mortgage; or
  • 20% of the original mortgage amount for any other kind of closed mortgage.
  • Some conditions apply.

How much can I save?

Mortgage Prepayment Calculator

1 Some conditions apply.

Payment Frequency

When you pay your mortgage more often you can take years off your mortgage and become debt-free sooner. With more frequent and accelerated payments, you may pay a little more each month, but you’ll pay your mortgage down faster, saving you interest costs over the long term.

Here’s how it works.

Example: $200,000 mortgage @ 7% APR on a 5-year fixed term with different payment frequencies for a 25 year amortization*

Payment Frequency Monthly
(1 payment/month)		 Weekly
(1 payment/week)		 Accelerated Weekly
(1/4 of monthly payment/week)
Payment $1,400.83 $321.45 $350.21
Total interest you pay $220,207.46 $219,359.36 $171,992.28
Interest saved N/A $847.90 $48,214.98
* The Annual Percentage Rate (APR) is for a mortgage of $200,000 and a 25-year amortization. APR assumes no fee(s) will apply. If an appraisal is required, the appraisal fee would increase the APR. The interest for a fixed rate mortgage is calculated half yearly, not in advance. The rate shown is an example only and is not necessarily applicable to an actual mortgage. Assume same interest rate for entire amortization period. These results are based on the above example as well as a number of assumptions. While care is taken in the preparation of the illustration, no warranty can be made as to its accuracy or applicability for any particular case.

Skip A Mortgage Payment

Life brings unexpected things. And sometimes those things require a little extra cash. That’s why BMO gives you a break when your finances seem stretched to their limit.

Take a Break Option*


If money gets tight you can skip up to one month of mortgage payments (principal and interest) per calendar year. Some restrictions apply so ask your mortgage representative for details. Choose to skip:

  • 1 monthly payment
  • Up to 2 consecutive bi-weekly or semi-monthly payments
  • Up to 4 consecutive weekly payments

Family Care Option*


Skip up to 4 months of mortgage payments (principal and interest) once per year if you or your partner must leave your job to care for a new baby or a sick family member. Some restrictions apply so ask your mortgage representative for details. Choose to skip:

  • 4 consecutive monthly payments
  • 8 consecutive bi-weekly or semi-monthly payments
  • 16 consecutive weekly payments

Keep in mind, any time you skip a mortgage payment, you continue to accrue interest. This means you’ll pay more over time. Pay back your skipped payments anytime without penalty.

*Take a Break or Family Care Options are not available with the Low-Rate Fixed Closed Mortgage, Take a Break and Family Care options apply to principal and interest payments on conventional and Genworth/CMHC-insured mortgages for owner-occupied single-family dwellings only, including condominiums and duplexes. For mortgages insured against default, customers must have prepaid principal at least equal to the amount of payment(s) to be skipped. Any mortgage insurance premiums and tax payments cannot be skipped. For MICC mortgages, only the Take a Break option is available. The Family Care option is not available to self-employed individuals. Customers currently receiving Mortgage Disability benefits (provided by Sun Life Assurance Company of Canada) are not eligible for skipped payments. Interest for the skipped payment is added to the principal. The balance of your current mortgage plus the skipped payment must not exceed the original amount of your mortgage with us. For conventional uninsured mortgages, the balance of your current mortgage plus the skipped payment must not exceed 80% of the lesser of your home’s present value or the original amount of your mortgage with us.
Mortgage Rates
5 year Low Rate (closed) Special Rate %
APR**
Prime Rate
Prime Rate %
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