DibzBMO mortgage rates (2026): what to know
How BMO mortgage rates work: Smart Fixed vs regular closed terms, 20% prepayment, IRD penalties, Homeowner ReadiLine, porting and renewal tips.
BMO mortgage rates come in two layers: a posted rate, which BMO publishes and uses in its penalty formula, and the discounted or special rates most borrowers actually sign at. What you'll pay depends on the product (a regular closed mortgage, the lower-flexibility BMO Smart Fixed, or a Homeowner ReadiLine), your down payment and what you negotiate. See BMO's current posted rates on its own site. The numbers in the box on this page are Bank of Canada averages for comparison, not BMO's prices.
Dibz isn't affiliated with or endorsed by BMO. Trademarks belong to their owners. Figures shown are Bank of Canada averages, not offers; talk to a licensed mortgage professional before you decide.
BMO quick facts
- Who it is: Bank of Montreal, one of Canada's six largest banks, lending through branches, phone and online.
- Closed-mortgage prepayment: up to 20% of the original amount as a lump sum each calendar year, plus a payment increase of up to 20%, on most closed mortgages (BMO).
- Smart Fixed exception: both limits drop to 10% on a BMO Smart Fixed Mortgage.
- Fixed-rate penalty: the higher of three months' interest or an interest rate differential (IRD).
- Readvanceable option: Homeowner ReadiLine, a mortgage plus a revolving line of credit up to 80% of your home's value.
BMO mortgage products
BMO offers fixed and variable closed mortgages, open terms, and the Smart Fixed Mortgage, a 5-year fixed product that trades some flexibility for its pricing. BMO's own page sets the Smart Fixed conditions: owner-occupied homes of one to four units (no rentals), a credit score of at least 600 for one borrower or guarantor, and debt ratios under 39% (gross) and 44% (total) on new purchases and switches.
The Homeowner ReadiLine splits your borrowing between a mortgage portion (fixed or variable) and a revolving line of credit priced at BMO's prime rate plus an adjustment. As the mortgage portion is paid down, the available line grows. BMO says the rate on the mortgage portion can be held for 130 days.
Prepayments and penalties
On most closed BMO mortgages you can, without a charge, prepay up to 20% of the original amount each calendar year (minimum $100 per prepayment) and raise your regular payment by up to 20% once a year. The two privileges don't eat into each other. On a Smart Fixed, both are 10%.
Break a closed fixed mortgage early and BMO charges the higher of:
- three months' interest at your rate, or
- an IRD: the gap between your rate and BMO's current posted rate for a similar mortgage over the remaining term, after taking off the discount you received.
That last part is why posted rates matter even if you never pay one. If you got a large discount off posted at signing, the IRD can be much bigger than three months' interest. Variable closed mortgages carry a three-months'-interest charge. BMO also notes that on a term longer than five years, prepaying after year five costs three months' interest.
Porting and assumption
BMO's portable option lets you move a fixed closed mortgage (or a fixed closed ReadiLine instalment) to a new home without a prepayment charge. Borrow more, and the extra is priced at the current posted fixed rate and blended with your existing rate. A buyer may also be able to assume your BMO mortgage with approval, though not a ReadiLine.
How to apply
You can get pre-qualified online, chat with or call a mortgage specialist, or book a branch appointment. Bring government photo ID and proof of income.
Posted vs discounted rates at BMO
A posted rate is a list price. BMO, like the other big banks, advertises special rates below it, and individual offers can be lower still. Posted rates still matter in three ways:
- Penalties: the IRD formula above starts from BMO's posted rate.
- Blended rates when porting: extra money is priced off the posted fixed rate.
- The stress test: you qualify at the higher of 5.25% or your contract rate plus two points (FCAC), so a discount also lowers the bar you must clear.
How BMO's posted rate compares with the chartered-bank benchmark
The Bank of Canada publishes a weekly benchmark: the 5-year conventional mortgage rate offered by chartered banks in Canada, which include BMO. BMO's own posted rate tends to move with that benchmark, but it can sit slightly above or below on a given day, so check BMO's page for the current figure. What borrowers actually pay is closer to the Bank of Canada's average for new mortgages, shown below against the posted benchmark.
- Chartered banks' posted 5-year fixed
- Average new insured fixed, 5 years and over
Posted: chartered banks' conventional 5-year rate, last reading of each month. New insured: average rate on new insured fixed mortgages of 5 years and over (funds advanced). Averages across lenders, not BMO's rates.
Source: Bank of Canada (free at bankofcanada.ca)
Show the numbers
| Chartered banks' posted 5-year fixed | Average new insured fixed, 5 years and over | |
|---|---|---|
| Sep 2024 | 6.49% | 4.52% |
| Oct 2024 | 6.49% | 4.39% |
| Nov 2024 | 6.49% | 4.28% |
| Dec 2024 | 6.49% | 4.21% |
| Jan 2025 | 6.49% | 4.29% |
| Feb 2025 | 6.49% | 4.25% |
| Mar 2025 | 6.49% | 4.13% |
| Apr 2025 | 6.49% | 3.98% |
| May 2025 | 6.09% | 3.92% |
| Jun 2025 | 6.09% | 3.92% |
| Jul 2025 | 6.09% | 3.95% |
| Aug 2025 | 6.09% | 3.99% |
| Sep 2025 | 6.09% | 4.05% |
| Oct 2025 | 6.09% | 3.97% |
| Nov 2025 | 6.09% | 3.94% |
| Dec 2025 | 6.09% | 3.97% |
| Jan 2026 | 6.09% | 3.94% |
| Feb 2026 | 6.09% | 3.89% |
| Mar 2026 | 6.09% | 3.96% |
| Apr 2026 | 6.09% | 3.95% |
| May 2026 | 6.09% | 3.96% |
| Jun 2026 | 6.09% | 4.01% |
| Jul 2026 | 6.09% | 4.05% |
In July 2026 the gap was about two percentage points. A spread like that is why the discount you received at signing carries so much weight in an IRD calculation.
Negotiating your BMO renewal
- Start early. Federally regulated lenders must send a renewal statement at least 21 days before maturity; many people start talking to their lender months before that.
- Compare against averages. The Bank of Canada figures on this page show what borrowers have recently been paying across all lenders, which makes a useful reference point.
- Use your lump sum first. BMO lets you prepay any amount at maturity without a charge, so renewal is a chance to cut the balance.
- Ask about term and product. Moving between Smart Fixed and a regular closed term changes your prepayment room, not just your rate.
- Know that switching is an option. Since November 2024, a straight switch of an uninsured mortgage to another federally regulated lender generally doesn't require a new stress test.
Try our mortgage calculator to see what a renewal rate does to your payment.
Related reading
See 5-year fixed mortgage rates for how fixed pricing works, HELOC rates for lines of credit like the ReadiLine, and the TD and RBC guides for how other big banks set their terms.
FAQ
How much can I prepay on a BMO mortgage?
On most closed BMO mortgages, up to 20% of the original amount each calendar year as lump sums, plus a payment increase of up to 20% once a year. On a BMO Smart Fixed Mortgage, both limits are 10%.
How does BMO calculate the penalty to break a fixed mortgage?
It is the higher of three months' interest or an interest rate differential based on BMO's current posted rate for a similar term, adjusted for the discount you received. Variable closed mortgages are charged three months' interest.
What is the BMO Smart Fixed Mortgage?
A 5-year fixed closed mortgage for owner-occupied homes with lower prepayment limits (10% lump sum and 10% payment increase) than BMO's other closed mortgages. BMO lists a minimum credit score of 600 and debt-ratio limits.
Can I take my BMO mortgage with me if I move?
Fixed closed mortgages and fixed closed ReadiLine instalments are portable. If you need more money, the extra is priced at the current posted fixed rate and blended with your existing rate.
Are the rates on this page BMO's rates?
No. They are Bank of Canada averages across lenders. For BMO's current rates, check BMO's mortgage rates page or ask a BMO mortgage specialist.
Sources
- BMO: Pay your mortgage faster (prepayments and charges)
- BMO: Homeowner ReadiLine
- BMO: Smart Fixed Mortgage
- BMO: Mortgage rates
- FCAC: Preparing to get a mortgage (stress test)
- Bank of Canada: posted and new-mortgage rate series (free at bankofcanada.ca)
This article is general information, not financial advice. Rates shown are Bank of Canada averages, not offers. Talk to a licensed mortgage professional before choosing a mortgage.
Dibz is a home search app for the Greater Toronto Area, built on the live TRREB MLS® feed. We write these guides from what we see in the market every day and check every rule and number against official sources, listed at the end of each article. Charts marked "Dibz analysis" are calculated from active MLS® listings on the date shown.
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