Real Estate

New BMO Mortgage Promo

  • Last Updated:
  • Mar 28th, 2018 6:59 pm
[OP]
Newbie
Mar 4, 2014
21 posts
Mississauga

New BMO Mortgage Promo

Hi,

Has anyone had experience with using BMO for their mortgage? I saw a promo with them that they were offering 3.29% for a 5-year fixed term mortgage (with a $500 signing bonus). Would they offer a lower rate if you have other services with them?

I was going to contact them about this but I was wondering if anyone else had experience with them and if there were any hidden terms in the contract I should be aware of.

Thanks!
13 replies
Sr. Member
Jan 4, 2013
578 posts
117 upvotes
TORONTO
25-year amortization not 30-year.
danylo13 wrote: Hi,

Has anyone had experience with using BMO for their mortgage? I saw a promo with them that they were offering 3.29% for a 5-year fixed term mortgage (with a $500 signing bonus). Would they offer a lower rate if you have other services with them?

I was going to contact them about this but I was wondering if anyone else had experience with them and if there were any hidden terms in the contract I should be aware of.

Thanks!
Newbie
Jan 31, 2018
12 posts
4 upvotes
danylo13 wrote: Hi,

Has anyone had experience with using BMO for their mortgage? I saw a promo with them that they were offering 3.29% for a 5-year fixed term mortgage (with a $500 signing bonus). Would they offer a lower rate if you have other services with them?

I was going to contact them about this but I was wondering if anyone else had experience with them and if there were any hidden terms in the contract I should be aware of.

Thanks!
This is the rate I'm planning to use for negotiating with my home bank and ultimately use towards the Tangerine promotion. They'll beat any big bank rate in writing by at least .05%, plus cover up to $1500 in legal, appraisal and discharge fees. Not sure how the $500 cash back wrks on BMO offer, but the $1500 is pretty attractive if looking to switch out.
Newbie
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Nov 29, 2014
31 posts
20 upvotes
Toronto, ON
I had a BMO 5 year fixed a while ago. They were fine to be with on the whole, but I would just be careful if the offer is for a five year fixed “smart” mortgage. If so, then at least at the time I had one, the conditions of that mortgage were that you either had to refinance with BMO or sell your property to get out of it within the 5 years (i.e. you could not refinance with another lender). Something to keep in mind if you desire some flexibility.

This was a couple of years ago though so please someone correct me if I’m wrong ...
[OP]
Newbie
Mar 4, 2014
21 posts
Mississauga
I spoke with BMO and these were the conditions:
mortgage.png
:

So it sounds similar to what you mentioned.
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Feb 2, 2014
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danylo13 wrote: Hi,

Has anyone had experience with using BMO for their mortgage? I saw a promo with them that they were offering 3.29% for a 5-year fixed term mortgage (with a $500 signing bonus). Would they offer a lower rate if you have other services with them?

I was going to contact them about this but I was wondering if anyone else had experience with them and if there were any hidden terms in the contract I should be aware of.

Thanks!
You can go as low as 2.99%5-year fixed with a non-bank lender. Unless you need BMO as your lender, it's not a hot deal.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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DKR1091 wrote: This is the rate I'm planning to use for negotiating with my home bank and ultimately use towards the Tangerine promotion. They'll beat any big bank rate in writing by at least .05%, plus cover up to $1500 in legal, appraisal and discharge fees. Not sure how the $500 cash back wrks on BMO offer, but the $1500 is pretty attractive if looking to switch out.
I don't think they will use that offer and beat it by.05%, since it's has some limited terms and conditions.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Aug 24, 2016
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Be aware, if it is the Smart Fixed Rate mortgage (I think it’s called) this is an unmovable mortgage product.
You cannot 2 years down the road move to another mortgage provider and break the 5 year term.
Only way to break the 5 year term is if you sell the property.
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coolintheshade wrote: Be aware, if it is the Smart Fixed Rate mortgage (I think it’s called) this is an unmovable mortgage product.
You cannot 2 years down the road move to another mortgage provider and break the 5 year term.
Only way to break the 5 year term is if you sell the property.
Yes, it's their Smart Product.

Nothing wrong with it, but the rate is high.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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CdnRealEstateGuy wrote: Yes, it's their Smart Product.

Nothing wrong with it, but the rate is high.
I have the Smart Fixed Rate with BMO, and the rate I started with in 2013 was 2.99%.
I found out afterwards if I had gone with a broker, I could have gotten lower, but I banked with BMO so it made sense.
Lesson learned.
BMO called me in Aug 2016 and offered to lower my rate to 2.44% if I resigned another 5 years, so I took it because I figured rates would be on the rise quicker than they actually did.
Seeing today’s rates, I still think I made the right move.
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Jan 31, 2018
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CdnRealEstateGuy wrote: I don't think they will use that offer and beat it by.05%, since it's has some limited terms and conditions.
Spoke with Tangerine this morning and they confirmed as long as its a big bank rate offer, on a term of 3 yrs or more, they'll beat by at least 0.05%. Also checked on any restrictions associated with their offer and its no different than their regular mortgages. The prepayment options are 25% lump sum and 25% payment increase, the mortgage can be broken with regular penalties and it can be moved over to another property (porting). So much more flexible than the BMO offer with a better price, Unfortunately their offer doesn't apply to non-bank lender rates.
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DKR1091 wrote: Spoke with Tangerine this morning and they confirmed as long as its a big bank rate offer, on a term of 3 yrs or more, they'll beat by at least 0.05%. Also checked on any restrictions associated with their offer and its no different than their regular mortgages. The prepayment options are 25% lump sum and 25% payment increase, the mortgage can be broken with regular penalties and it can be moved over to another property (porting). So much more flexible than the BMO offer with a better price, Unfortunately their offer doesn't apply to non-bank lender rates.
You are referring to a different product then, so it's getting confusing.

Refer to OP's post (#5). That's their SMART product.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Jan 31, 2018
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CdnRealEstateGuy wrote: You are referring to a different product then, so it's getting confusing.

Refer to OP's post (#5). That's their SMART product.
I was referring to your comment about Tangerine not being able to beat the BMO offer. They will beat it and their mortgage is not restrictive with superior pre-payment options. Hope that clears any confusion.
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DKR1091 wrote: I was referring to your comment about Tangerine not being able to beat the BMO offer. They will beat it and their mortgage is not restrictive with superior pre-payment options. Hope that clears any confusion.
That's pretty good that they will use the Smart product as reference, given it's not a full feature product. It's not an apples-to-apples comparison. Most of the time they won't.

Having said that, there are still better rates out there.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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