Types of Mortgages at BMO
Whether your mortgage is currently with BMO or you are considering transferring your mortgage to BMO, the mortgage renewal process is very efficient. BMO offers competitive rates that may be lower than your current banks rate, and has also been known from time to time, to offer a suite of cashback and banking incentives for switching. Either way, considering this leading Canadian bank for your transfer is always a good idea.
The mortgage refinance is similar to a regular mortgage renewal or ‘transfer’, except the mortgage can be changed more with a refinance. For example, a bigger mortgage can be applied for and used to pay out your existing mortgage, plus some extra amount for any need, such as debt consolidation or home updates. This is how an equity takeout mortgage works.
Moreover, with a refinance, the mortgage amortization can be extended to help lower payments when rates are higher or finances are tighter. Then, once rates drop and incomes increase, BMOs’ annual pre payments of 10% or more may be used to repay the mortgage principal faster.
Purchase Plus Improvements
When buying a home, especially in the resale market, there may be some updates desired to bring the property up to your standards and taste. The purchase plus improvement program is designed to add these upgrade costs directly into the mortgage. There are a few steps for this program to work, such as obtaining a quote for the improvement work before the mortgage is applied for. However, overall, the process is relatively straight forward and has been used by thousands of homeowners in Ontario to add value to their purchase.
Cottage Mortgages and Second Homes
The cottage mortgage program at BMO offers the same great rates on second properties, or very close to them, as they do on owner occupied properties. This can help make the dream of owning a cottage happen sooner. If you are looking to buy a home for children or parents, the same second home program applies. There are differences between cottage property types, however, so be sure to contact for more details.