Portable Mortgage Option
If you want to refinance your mortgage or purchase another home without paying a prepayment charge, you can transfer the existing terms of your fixed rate closed mortgage or Homeowner ReadiLine® fixed rate, closed installment to a new mortgage of the same type. If you need to increase your mortgage amount, your existing fixed mortgage interest rate will be blended with the current fixed posted interest rate applicable to the additional mortgage amount (subject to qualification).
When selling your home, the purchaser may have the option to assume your BMO® mortgage terms with BMO's approval. We will release you from any personal liability on the mortgage if your purchaser meets our usual credit requirements and if your lawyer has completed the necessary paperwork. Note: This option is not available for Homeowner ReadiLine®
Use your prepayment options before paying your mortgage in full
If you intend to pay off your mortgage prior to the end of the mortgage term, use your allowable mortgage prepayment options to reduce prepayment charges before requesting a payoff statement.
Consider an open mortgage term
If you intend to sell the property or refinance within a short period of time, choose an open mortgage term instead of a closed term if this makes financial sense given applicable interest rates. This will help you avoid prepayment charges.
Pay down your mortgage at renewal time
You can make any lump sum prepayment amount at the end of your mortgage term and renew without a prepayment charge.