Buying a Home
Whether you’re purchasing your first home, a second property, moving or downsizing, the process can be both exciting and overwhelming. Let's look at some of the key steps to help you feel confident on your home-buying journey.
Save up to $500 in closing costs† and enjoy exclusive rate discounts as a BMO Customer.
The home-buying process
Step 1: Pre-qualification
Thinking about buying a home? Find out how much you can potentially afford and start exploring your mortgage options by getting pre-qualified.
Step 2: Application
Ready to make an offer on a new home? Fill out a mortgage application providing your financial information.
Step 3: Processing
Your lender will help identify any additional documentation you need and order an appraisal, title report and private mortgage insurance details.
Step 4: Underwriting
Your financial information is reviewed to determine your credit worthiness and ensure all qualifications are met to approve your loan.
Step 5: Closing
You’ve been approved! Get ready to schedule your closing with your lender, clear all conditions and provide the final funds that are needed
Ready to get started?
Apply nowFound the right home? We’re here to help make it yours. Start your mortgage application today and get a personalized rate that fits your needs.
What’s the difference between pre-qualification and pre-approval?
In short: a pre-qualification is a free estimate of your borrowing power, and a pre-approval is when a lender approves your finances and gives you a conditional commitment for a mortgage.
Pre-qualification
What is it?
A free estimate of how much you may be able to borrow for your home purchase. You’ll get a general price range of how much home you can afford, but nothing is official or set in stone at this point.
When should I get pre-qualified?
It’s best to get pre-qualified before you start your search to give you an idea of what you can afford.
Pre-approval
What is it?
A free process where you'll learn if you’re approved for a mortgage and exactly how much you can borrow to buy your home. It’s a firm commitment in writing from your lender.
When should I get pre-qualified?
If you’re getting serious about buying or already have a home in mind, you’ll want to get pre-approved before you make an offer.
Learn more about getting pre-qualified vs. pre-approved.
Explore our rates
Find a competitive mortgage rate that's best for you by getting in touch with one of our Mortgage Specialists. Plus, save up to $500 in closing costs† and take advantage of our special BMO rate discounts.
Fixed rate mortgages
Take advantage of a stable mortgage rate that may make it easier to plan and budget for the long term1.
Adjustable rate mortgages
Jumbo mortgages
Low down payment mortgages
Our low down payment options work with your budget – a great choice for those looking to put down a smaller deposit.
Calculators
Crunch some numbers to calculate your budget before you start house-hunting.
Calculate how much you’d spend each month on your home with a fixed rate mortgage.
Compare down payment options based on the expected years in your home.
Helpful resources for your homebuying journey
Fixed vs adjustable rate mortgages: Which is right for you?
What’s the difference between a fixed and adjustable rate mortgage? And which is better for you? We’ve got those answers and more.
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.
What you need to know about your down payment on a house
How much money should you put down on a new home? Get our tips on saving for a down payment and calculate what your payments could be.
Ready to get started?
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.
We're here to help
Get expert guidance from our team. We'll answer your questions and support you every step of the way.
Frequently Asked Questions
That usually depends on the mortgage lender and the type of mortgage you’re applying for. Since lenders (like BMO) use your credit score to assess your creditworthiness, a higher score means you’re a more reliable borrower and can translate into lower interest rates – this means smaller monthly payments and less interest over the duration of your loan.
Most mortgages require a minimum credit score of 620, but mortgage assistance programs offer more flexibility and accept a lower credit score to apply.
The standard down payment is usually 20% of your home’s purchase price, but it’s possible to pay less than 20% as a down payment depending on the program. If you do put down less, your rate may be impacted and you also may be required to pay for monthly private mortgage insurance (PMI), until you’ve paid for at least 20% of your home. If you’ve found the right house and you don’t have 20% on hand, banks like BMO offer low down payment mortgages that can help make buying a home more affordable.
Learn more about your down payment on a house.
Closing costs can add up to 3% to 6% of your home’s purchase price depending on your local market and the type of home you’re buying. If you’re looking for an estimate on what your closing costs could be, take our mortgage closing cost calculator4 for a spin.
Special offers are subject to change.
footnote dagger The closing cost discount offer is available on applications received from September 1, 2024 through July 31, 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 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 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 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 accounts are excluded). Not applicable to our Private Bank clients or BMO employees.
footnote 2 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 Jumbo loans are loans greater than $806,500. Loan limits are subject to change.
footnote 4 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