The Finance Owl

Banks – Loans – Mortgages – Money

Bank of Montreal MortgagesThis article discusses Bank of Montreal mortgages. Consequently, it is intended as an introduction for those who might be interested in seeking out a Bank of Montreal mortgage loan.

The Bank of Montreal offers both fixed and variable rate mortgages. A fixed rate mortgage has a constant rate of interest that does not change over the life of the loan. A variable rate mortgage is flexible, fluctuating with the Bank of Montreal’s prime rate. There are reasons why you might choose one or the other.

Bank of Montreal Fixed and Variable Rate Mortgages

BoM fixed rate mortgages provide a degree of certainty. Your mortgage rate will not vary with economic conditions. BoM variable rate mortgages are ideal for those who believe that interest rates will decline. There is, however, an element of risk with variable rate mortgages that does not exist with fixed rate mortgages.

The Bank of Montreal offers a variety of mortgage options with terms ranging from six months to 18 years. These include both open term mortgages, which offer flexibility in repayment and closed term mortgages, which offer lower interest rates at the cost of a strict repayment schedule.

Benefits of Bank of Montreal Mortgages

There are a number of benefits to acquiring a Bank of Montreal mortgage.

  • Bank of Montreal Mortgage Pre-Approval – Bank of Montreal offers pre-approval on mortgages, which can help you make informed financial decisions about a new home purchase. Bank of Montreal pre-approvals come with a guaranteed rate. The fixed rate that you are quoted will remain available for up to 90 days. If the rates drop in the meantime, you will automatically get the lowest rate that is offered during that period. If the rates should rise, you can receive the lower rate which you were quoted.
  • Bank of Montreal Mortgage Insurance – Bank of Montreal offers two types of mortgage insurance. Mortgage disability insurance protects you in the case of an accident or illness that keeps you from being able to afford your mortgage payments. Depending upon the coverage you choose, up to 100% of your monthly mortgage payments can be covered. As opposed to mortgage disability insurance, mortgage life insurance protects your investment in your home in the case of death. It will pay up to $600,000 of your outstanding balance on your mortgage as of the date of death.
  • Bank of Montreal Homeowner ReadiLine – This service allows Bank of Montreal mortgage customers who have at least 20% equity in their homes (or a 20% downpayment on a new home) to access up to 80% of the equity in their homes. For many, this could render the need for mortgage refinancing nonexistent. Customers can access funds as often as they like up to their credit limit, and may do so through a variety of options, including online and telephone banking or by using a special MasterCard┬« issued by the Bank of Montreal.
  • Bank of Montreal Mortgage Cash Account – Bank of Montreal allows you flexibility with funds you use to make prepayments against your mortgage’s principal. These funds automatically enter into a borrowing reserve. You may choose to re-borrow funds in your borrowing reserve and have them automatically added to your mortgage principal, removing the need for a new mortgage application.

If you are considering a Bank of Montreal mortgage you may want to discuss your requirements with a suitably qualified professional beforehand.