BMO Mortgage Review: Lending Options and Features
When it comes to financing your home, BMO offers a wide range of lending products to suit your needs. Whether you’re purchasing a new home, refinancing, or accessing your home equity, BMO has options for you. They also provide specialized loan programs such as FHA and VA loans, although USDA loans are not offered.
One standout feature of BMO’s mortgage offerings is the Neighborhood Home Loan, which caters to Canadians looking to buy or refinance a home in the US. This program requires as little as a 1% down payment and eliminates the need for private mortgage insurance (PMI). This can be a significant advantage for Canadians looking to invest in the US housing market.
Another perk offered by BMO is a rate discount of 0.125% for borrowers who use autopay from a BMO personal checking account to make their mortgage payments. This small discount can add up over time and save you money on interest.
When it comes to loan types, BMO offers a diverse range of options to suit different borrowers’ needs. These include conventional mortgages, both fixed-rate and adjustable-rate, as well as FHA, Jumbo, and VA loans. They also provide home equity loans, HELOCs, construction loans, investment property loans, and condo financing. Additionally, BMO offers specialized programs like Freddie Mac Home Possible and first-time homebuyer loans, catering to specific segments of the market.
While BMO doesn’t disclose its minimum mortgage amount publicly, it’s important to note that this figure can vary depending on factors such as your location, credit profile, and other considerations. It’s best to reach out to a BMO representative directly to determine what minimum mortgage amount may apply to your situation.
Similarly, the maximum amount you can borrow will depend on the type of loan you’re obtaining and the lender’s policies. For example, jumbo loans typically offer a higher maximum amount compared to conventional loans. It’s essential to discuss your specific borrowing needs with a BMO mortgage specialist to determine the loan options and maximum amount available to you.
When it comes to loan servicing, BMO manages its own loan servicing but may sell loan portfolio assets to other entities. This means that while BMO may initially serve as your loan servicer, another servicer could potentially acquire your loan on the secondary mortgage market. It’s crucial to stay informed about any changes in loan servicing and communicate with your lender regarding any updates or concerns.
In conclusion, BMO offers a diverse range of lending products and features to cater to various borrowers’ needs. From conventional mortgages to specialized programs, such as the Neighborhood Home Loan, BMO provides options for borrowers in different situations. While specific details regarding minimum and maximum loans may vary, BMO’s mortgage offerings are worth exploring if you’re in the market for a home loan.