Bank of Montreal (in French, known as Banque de Montréal) is a global investment bank and financial services company headquartered in Canada. Founded as Montreal Bank in Montreal, Quebec, in 1817, its headquarters remain in Montreal. However, its corporate headquarters and executive offices have been located in Toronto, Ontario since 1977.
Part of Canada’s Big Five banks, it is the fourth-largest bank in Canada by market capitalization and assets. Furthermore, it is one of North America ‘s ten largest banks.
The acronym BMO, which is also the stock symbol on both the Toronto Stock Exchange and the New York Stock Exchange, is widely recognized for being a prominent player in the industry. With this, they are able to offer great, competitive mortgage rates.
Overview
John Richardson and eight merchants signed the Articles of Association on the 23rd of June in 1817 to create Montreal Bank in a rented house in Montreal, Quebec. On the 3rd of November in 1817, the bank formally started doing business, making it the oldest bank in Canada. In 1822, it underwent a change of name to its current title.
The institute number (or bank code) for BMO is 001. The bank operates as BMO Bank of Montreal in Canada and has over 900 branches serving over seven million customers. The company does business as BMO Financial Group in the United States. It has extensive activities in the city of Chicago and elsewhere in the world where it runs BMO Harris Bank.
Since 1829, the company has not missed a dividend payment, consistently paying dividends through major world crises such as World War I, the Great Depression, World War II and the financial crisis of 2008. This makes the dividend payment history of the Bank of Montreal one of the longest in the world.
Best Rated Mortgage Rates
BMO Bank of Montreal (BMO Financial Group) is the oldest bank in Canada to have formally started a business in 1817. Today, it is the country’s fourth-largest bank by market capitalization. Across Canada, the bank has 900 + branches that represent more than seven million clients.
BMO has a $106 + billion mortgage portfolio (as of Q2 2018) and markets its mortgage products by mortgage specialists and branches. The bank is not taking part in the market for mortgage brokers.
BMO is known for its special headline rates. In fact, it was the first major bank to hold 2.99 percent on a 5-year mortgage set in 2012)and low-frills mortgage (the “Smart Fixed” mortgage).
5-year Smart Fixed Mortgage
BMO’s mortgage flagship option is its 5-year Smart Fixed mortgage (previously referred to as “Low Rate Mortgage”). The deal, which offered among the major banks among the lowest five-year fixed rates available, attracted the wrath of late Finance Minister Jim Flaherty when the bank sold it as a 2.99 percent promotion at a time when the government was attempting to slow down borrowing.
The bank later changed the name of the loan, but the characteristics remain mostly the same. With this product, BMO also provides a 10-year term.
Variable-rate Mortgage
The variable mortgage for banks may be converted to a fixed-rate at any time. But when turning, keep in mind that you rarely get much better than the advertised rates.
BMO mortgages with variable rates have fixed payments. That means you’ll pay less principal and more interest if the prime rate goes up, and vice versa. The amount always stays the same (unless rates rise so much that the interest due is not covered).
BMO Cash Account
This is by far the best features of the mortgages at BMO. The cash plan helps you to reborrow your mortgage prepayments, at $2,500 increments. The kicker is, at the same cost as your regular mortgage you get to do so. In other terms, for the remainder of the period, the reborrowed funds will be added to your mortgage principal at the present interest rate.
BMO’s cash account provides an enormously low-cost source of funds. Therefore, there is no risk when making prepayments as you can borrow the money back at any time. No other big Canadian lender provides this feature.
Conclusion
BMO markets its own branded mortgages through its subsidiaries, experts in mobile mortgages, and through its call center. Unlike some of the other major banks, BMO is not taking part in the web of mortgage brokers, which it left in 2007.
When you move a mortgage to BMO, bear in mind that the bank will also pay your review fees as well as legal fees for registration. To learn more about these loans, contract the bank directly.
If you’re looking for mortgage services, it’s best to contact The Bank of Montreal and ask general mortgage questions through 1-877-225-5266. You can also complete a mortgage application online in under 20 minutes through their website at bmo.com.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.