How it works
Apply for, and be approved and advanced a new BMO fixed or variable rate mortgage with a closed term of 4 years or longer and a maximum 25 year amortization period on or after January 16, 20171:
- Get $500 with a mortgage valued between $100,000 - $249,999
- Get $1,000 with a mortgage valued at over $250,000
- The mortgage must require mortgage default insurance and the default insurance must have been obtained
Make your mortgage payments from a BMO chequing account that has a Practical, Plus, Performance, AIR MILESÂ®â€ or Premium Plan1:
- If you already have a BMO chequing account and a Practical, Plus, Performance, AIR MILES or Premium Plan, youâ€™re ready to go
- If you donâ€™t yet have a BMO chequing account and a Practical, Plus, Performance, AIR MILES or Premium Plan, open one to get started
Mortgage basics for first-time home buyers
How do I get a mortgage with BMO?
Step 1: Start the conversation
Step 2: Secure your BMO Mortgage PRE-APPROVAL
- A pre-approval lets you shop for a house confidently, knowing how much you can borrow and what your mortgage payments will be.
- Check out this list of things you need to bring to your first meeting for a pre-approval.
Step 3: Find your dream home
- When you find your home, make an offer!
Step 4: Secure your BMO Mortgage APPROVAL
- Once the offer is accepted, connect back with us and we will send an appraiser to confirm the property value matches the selling price and can be financed with your mortgage.
- You may have to provide additional documents related to your income and property at this stage.
Step 5: Get a real estate lawyer or notary as soon as your mortgage is approved
- On the closing day, your lawyer or notary will ensure the balance of the purchase price is transferred to the sellerâ€™s lawyer.
Congratulations, you have a mortgage; and your new home!
What is Mortgage Default Insurance?
- Mortgage Default Insurance, commonly known as Mortgage Insurance, allows home buyers to achieve the dream of home ownership. 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. Default insurance costs will apply.
What are the benefits of the Mortgage Default Insurance?
- Home buyers may have the opportunity to start building equity earlier as opposed to waiting until they have saved 20% down.
- Home buyers with smaller down payments are still able to secure a competitive interest rate.
- Mortgage Default Insurance provides a portability feature, reducing or eliminating premium charges for your insured loan when purchasing another property. Prepayment charges related to the mortgage itself, may apply.
How do I get mortgage default insurance?
- We will arrange the purchase of mortgage default insurance at the time of your mortgage application.
- Mortgage default insurance premiums are based on the mortgage amount and can be paid in lump sum or amortized over the length of the mortgage.
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