BMO Bank Mortgage

BMO Bank's mortgage operation is one of the larger pieces of its US business, built partly on the legacy of Harris Bank's long history in the Chicago market and expanded through the Bank of the West acquisition. The bank offers conventional fixed-rate loans, adjustable-rate mortgages, government-backed FHA and VA products, and jumbo loans for high-value properties. BMO also maintains a dedicated mortgage team that works out of branches and by phone, which can be an advantage for first-time buyers who want hand-holding through the process.

BMO Mortgage Products

The fixed-rate mortgage is the bread-and-butter product. BMO offers terms of 10, 15, 20, and 30 years, with the 30-year fixed being the most popular choice among buyers. Rates are competitive with other large regional banks and are published daily on BMO's website. The bank also offers a rate lock feature that lets borrowers freeze their rate for 30 to 60 days while shopping for a home, which protects against market movements during the house-hunting phase.

The adjustable-rate mortgage (ARM) starts with a lower rate than the fixed product, then adjusts periodically after an initial fixed period, typically 5, 7, or 10 years. ARMs make sense for buyers who plan to sell or refinance before the adjustable period begins, but they carry the risk of higher payments if rates rise significantly. BMO caps the annual adjustment and the lifetime maximum increase, which provides a floor on how bad it can get.

Government and Jumbo Loans

FHA loans through BMO allow down payments as low as 3.5% and are designed for buyers with credit scores in the mid-600s who might not qualify for a conventional loan. VA loans are available to eligible veterans and active-duty service members, often with no down payment and no private mortgage insurance requirement. Jumbo loans cover loan amounts above the conforming limit, currently over $766,000 in most markets, and require stronger credit and larger down payments.

How to Apply for a BMO Mortgage

The mortgage application process at BMO starts with a pre-approval. Buyers submit income documentation, authorize a credit pull, and provide asset statements. BMO then issues a pre-approval letter stating how much the buyer can borrow, which is essential when making an offer on a house. Pre-approval typically takes a few business days, though well-organized applicants with straightforward finances can sometimes get it faster.

From Application to Closing

After the buyer goes under contract on a home, the full loan application begins. BMO orders an appraisal, verifies employment, and reviews the purchase agreement. The underwriting process usually takes two to four weeks, depending on how complex the borrower's financial picture is. BMO offers both in-person closings at title companies and remote online notarization in states where it is legal. Closing costs typically range from 2% to 5% of the loan amount and include lender fees, title insurance, and prepaid escrow items.

Refinancing with BMO

Existing homeowners can refinance through BMO for two main reasons: to lower their interest rate (rate-and-term refinance) or to pull cash out of their equity (cash-out refinance). The application process mirrors a purchase mortgage, though appraisals are sometimes waived if the loan-to-value ratio is low enough and the home's value is well-documented. BMO occasionally runs promotional refinancing offers with reduced lender fees, which can save several hundred dollars at closing.