Skip navigation
ShowSkip navigation
Navigation skipped

Buying Your Next Property



Man and woman smiling as they enter the front door of their home.

Buying your next property

Buying a second home or property? Exciting! Whether you’re looking for a vacation home, a larger home, investing in real estate, or downsizing, we can help you through this next step in your real estate journey.

Ready to explore your options?

Get started
Investing in real estate can bring in extra income and help you build your equity. What’s not to love? However, before you take the plunge, it’s a good idea to learn about the responsibilities that come along with an investment property.
Start by reviewing your finances and asking yourself if you can afford to carry an investment property. Here’s a primer on what’s needed to help you decide:
  • A minimum 20% down payment
  • Real estate agent commissions and lawyer fees
  • Income that can cover your mortgage payments, property taxes, utilities (if you’re paying), insurance and repairs
  • A budget for maintenance repairs
You’ll also need to dedicate some of your time to learning about your legal obligations as a landlord and familiarize yourself with the Canada Revenue Agency Rental Income Guide.
Interested in expanding your real estate portfolio? We can help. Speak to a Mortgage Specialist for more information and to start your pre-approval.
Find out what you can afford with our Affordability Calculator.
Have you outgrown your current home, need to relocate or just want a change of scenery? We’ve got tips and strategies to help make your home buying or selling experience a success.
  • Should you buy before you sell or sell before you buy?

    There are advantages to both of these strategies. Make sure to check with your realtor for advice on the best ways to buy and sell.
    • Selling your home first:
      • Getting a new mortgage will be easier
      • You won’t have to carry two mortgages at once
      • You can use the proceeds from your home sale toward your new home
    • Buying a new home first:
      • You have more time to make improvements and upgrades to your new home before move-in
      • You can make your current home “sale-ready”
      • You won’t have to worry about not being able to take possession of your new home before closing on your current home

  • How to finance your second home

    • Check your current mortgage features. A portable mortgage lets you transfer your existing fixed mortgage rate, loan balance and maturity date to your new mortgage.
    • Get a pre-approval. Even if you’re a current homeowner and are looking to buy a new property, you’ll still need to get pre-approved for a mortgage before you start shopping. Then you can look at your existing equity and what you have available to purchase the next home of your dreams.
    • Consider bridge financing. Bridge financing is used when you buy a property before your current home sells. The temporary funding covers costs of both mortgages until you close the sale on your property.

Ready to make your move? We can help. Speak to a Mortgage Specialist for more information and to start your pre-approval.
Perhaps your children have grown and left the nest. Maybe you’re planning to retire and want a lower maintenance home. Or, you may want to move to a new city. Whatever your reasons for downsizing, we have ways to help you make the most of the equity you’ve built in your home.
Downsizing from a house to a condo has several benefits. You no longer have to concern yourself with property maintenance, shovelling snow, cutting grass, and all of the other house chores. However, condos tend to charge a monthly maintenance fee, typically ranging from a couple of hundred dollars a month to $1000, so you’ll have to look closely at these fees when shopping for a condo.
Free up funds you’ve built in your home. Let’s say your current home is worth one million dollars in today’s market and you buy a new property for $750,000, you’ll have approximately $250,000 in available cash. That windfall can be used as investment funds to give a lift to your post-retirement finances. If you’re considering this scenario and believe you’ll have extra funds for investing, a BMO financial advisor can help provide you with a variety of investment options and guidance.
Moving to a less expensive area can lower your daily expenses and save you money. Buying a less expensive home further out of the city can cut costs and free up more post-retirement funds. You may also be considering relocating to a new country for retirement.
Now that you have some of the basic tips and advice on buying and selling, you’ll be able to make choices with more confidence.
Ready to make your move? We can help. Speak to a Mortgage Specialist for more information and to start your pre-approval.

We found a Mortgage Specialist near you

Connect with a Mortgage Specialist near you

Get expert insight in-person or over the phone, at your local branch, coffee shop or home — wherever works best.

Get a mortgage with BMO

Start your pre-approval and get expert advice

Get expert advice and start your pre-approval

Here's how:

Talk to a Mortgage Specialist

Get expert insight in person, by phone, or by email

Schedule a call

Complete a short form and we’ll call you within 24 hours

Visit us

Book an appointment at a BMO branch to discuss your mortgage options

We’ve found a Mobile Mortgage Specialist near you

Get expert insight in-person or over the phone, at your local branch, coffee shop or home — wherever works best.

Email

We have sent the email. Thank you.

Oops! Something went wrong

How would you like to be contacted?
Are you currently working with a realtor?

Terms & Conditions

†* Due to local and proxy caching on the Internet, please ensure that you are viewing rates as at the current day's date. These interest rates and terms are subject to change without notice.
* APR. Available on the 5-year BMO Smart Fixed Mortgage (closed). The Annual Percentage Rate (APR) is based on a $350,000 mortgage, 25-year amortization and an appraisal fee of $300, which may be required to complete your lending application. Mortgage funds must be advanced within 130 days from the date of application. Appraisal fees are subject to change. An increase in the appraisal fee may result in an increase to the APR. This offer may be changed, withdrawn or extended at any time without notice. Applications are subject to meeting BMO's usual credit criteria. Some conditions may apply. This offer is not available for the regular 5-year fixed rate mortgage (closed) or the Homeowner ReadiLine®.
** APR. Available on the 10-year BMO Smart Fixed Mortgage (closed). The Annual Percentage Rate (APR) is based on a $350,000 mortgage, 25-year amortization and an appraisal fee of $300, which may be required to complete your lending application. Mortgage funds must be advanced within 130 days from the date of application. Appraisal fees are subject to change. An increase in the appraisal fee may result in an increase to the APR. This offer may be changed, withdrawn or extended at any time without notice. Applications are subject to meeting BMO's usual credit criteria. Some conditions may apply. This offer is not available for the regular 10-year fixed rate mortgage (closed) or the Homeowner ReadiLine®.
† The Annual Percentage Rate (APR) is based on a $350,000 mortgage, 25-year amortization and an appraisal fee of $300, which may be required to complete your lending application.
†† The 5-year variable rate (closed) term is equal to our Prime Rate + 0.15%. Rate is subject to change without notice. The interest rate for a variable rate mortgage is calculated monthly, not in advance.
1. The interest rate for a fixed rate mortgage is calculated half-yearly, not in advance. The interest rate for a variable rate mortgage is calculated monthly, not in advance. The 3-year variable rate (open) term is equal to our Prime Rate + 1.20%, the 5-year variable posted rate (closed) term is equal to our Prime Rate + 0.15%. The 5-year variable special rate (closed) term is equal to our Prime Rate – 0.05%. Interest rates are provided for informational purposes only and can change at any time without notice. The 3-year variable (open) interest rate is not applicable to the Homeowner ReadiLine. Due to local and proxy caching on the Internet, please ensure that you are viewing rates as at the current day's date.
2. Prepayment charges will apply if changing from a fixed rate mortgage to a variable rate mortgage.
3. A minimum 5% down payment is required for a purchase price of $500,000 or less. For a purchase price between $500,000 and $1 million, the minimum down payment is 5% on the first $500,000 and 10% on the balance. A home purchase price of greater than $1 million dollars is not eligible for mortgage default insurance and requires a minimum down payment of 20%.
4. The standard premium charged for a 90% and 95% loan-to-value ratio mortgage (as at March 17, 2017)
6. APR. Available on the 7-year BMO Fixed Mortgage (closed). The Annual Percentage Rate (APR) is based on a $350,000 mortgage, 25-year amortization and an appraisal fee of $300, which may be required to complete your lending application. Mortgage funds must be advanced within 130 days from the date of application. Appraisal fees are subject to change. An increase in the appraisal fee may result in an increase to the APR. This offer may be changed, withdrawn or extended at any time without notice. Applications are subject to meeting BMO's usual credit criteria. Some conditions may apply. This offer is not available for renewals of existing BMO mortgages.
7. APR. Available on the 5-year BMO Smart Fixed Mortgage (closed). The Annual Percentage Rate (APR) is based on a $350,000 mortgage, 25-year amortization and an appraisal fee of $300, which may be required to complete your lending application. Mortgage funds must be advanced within 130 days from the date of application. Appraisal fees are subject to change. An increase in the appraisal fee may result in an increase to the APR. This offer may be changed, withdrawn or extended at any time without notice. Applications are subject to meeting BMO's usual credit criteria. Some conditions may apply. This offer is not available for the regular 5-year fixed rate mortgage (closed) or the Homeowner ReadiLine®. This offer is not available for renewals of existing BMO mortgages.
Note: The cost of default insurance is subject to change if the purchase price or appraised value, the amount of down payment or the amortization changes. The final premium and the cost of your mortgage default insurance will be disclosed in your mortgage commitment/loan document. ® Registered trade-marks of Bank of Montreal.
Personal lending products and residential mortgages are offered by the Bank of Montreal and are subject to its standard lending criteria. Some conditions apply. Special Offers are discounted rates and are not the posted rates of the Bank of Montreal. Specials Offers may be changed, withdrawn or extended at any time, without notice.