Big-bank profile · Bank of Montreal
BMO Bank of Montreal mortgages: rates, prepayment, penalties and HELOC
Short answer: BMO’s 5-year fixed special was 5.14% (posted 6.09%) on November 2, 2026. Closed mortgages allow lump sums of 20% (Smart Fixed 10%) a year. Breaking a fixed term costs the higher of 3 months’ interest or an IRD against its posted rate for the closest term, less your discount.
BMO offers fixed terms from one to ten years, its lower-rate Smart Fixed, variable, convertible and open terms, and the Homeowner ReadiLine. It allows renewal up to 180 days early, one of the two widest windows of the six.
Bank pages checked November 2, 2026 · Independent guide, not affiliated with BMO.
Mortgage products
- Posted fixed closed terms: 1, 2, 3, 4, 5, 6, 7 and 10 years, plus 5-year and 10-year Smart Fixed. Variable: 5-year closed and 3-year open. Also a 6-month convertible and 6-month and 1-year open fixed terms. [BMO, checked Nov 2, 2026]
- Smart Fixed lets you increase payments by 10% and make a lump-sum payment of 10% each year. It is for owner-occupied properties (1 to 4 units) and qualifies at GDS under 39% and TDS no higher than 44%. [BMO, checked Oct 31, 2026]
- Homeowner ReadiLine mortgage portions come with a 130-day rate guarantee, which BMO calls the longest of any major bank in Canada. [BMO, checked Oct 31, 2026]
Posted and special rates
| Term | Rate | Type |
|---|---|---|
| 5-year fixed (closed) | 6.090% | Posted |
| 5-year Smart Fixed, ≤25-yr amortization | 5.14% | Special / advertised |
| 5-year Smart Fixed, default insured | 4.99% | Special / advertised |
| 3-year fixed (closed) | 6.050% | Posted |
| 3-year fixed, ≤25-yr amortization | 4.94% | Special / advertised |
| 1-year fixed (closed) | 5.490% | Posted |
| 5-year variable (closed) | 4.700% | Posted |
| 5-year variable, ≤25-yr amortization | 4.35% | Special / advertised |
BMO Prime Mortgage Rate was shown as 4.700%. [BMO, checked Nov 2, 2026]
Posted rates are the bank’s list rates; most borrowers are offered a discount from them. The posted rate still matters after you sign, because the big banks use it in the IRD penalty. Read posted vs special rates, and score any quote on IsThisAGoodRate.ca.
Prepayment privileges
- Lump sums each year without a charge (minimum $100): up to 20% of the original amount on closed mortgages, or 10% on a BMO Smart Fixed Mortgage. [BMO, checked Nov 2, 2026]
- Payment increase once each calendar year: up to 20% of the current payment (10% for Smart Fixed). [BMO, checked Nov 2, 2026]
Prepayment penalty
- Fixed closed: the higher of three months’ interest at the applicable fixed rate or an amount calculated using the interest rate differential. [BMO, checked Nov 2, 2026]
- IRD: the difference between your rate and “the current posted rate charged for the mortgage similar to yours for the remaining term”, taking into account any rate discount you received. [BMO, checked Nov 2, 2026]
- Comparison term: the posted term closest to the time remaining; if exactly halfway, BMO’s standard charge terms use the higher of the two posted rates. [BMO, checked Nov 1, 2026 (MITEY research; bmo.com blocks direct downloads)]
- Variable closed: three months’ interest at the rate on the day of prepayment. In the last three months of a term the charge is the interest on the amount prepaid; terms over five years drop to three months’ interest after year five. [BMO, checked Nov 2, 2026]
BMO penalty calculator (uses BMO’s posted rates) · BMO’s own penalty page ↗
Worked example: what breaking a BMO mortgage would cost
A $500,000 5-year fixed at 5.29%, 25-year amortization, signed when BMO’s posted 5-year rate was 6.89% (a 1.60-point discount). Priced with BMO’s own posted table (November 2, 2026) and the rule it publishes, the cost to break falls like this as the term runs down:
| Months left | Balance | BMO compares with | Rate after discount | 3 months’ interest | Estimated penalty |
|---|---|---|---|---|---|
| 54 | $495,082 | 5-yr posted | 4.49% | $6,547 | $17,823 |
| 42 | $484,851 | 3-yr posted | 4.45% | $6,412 | $14,255 |
| 30 | $474,072 | 3-yr posted | 4.45% | $6,270 | $9,956 |
| 18 | $462,715 | 1-yr posted | 3.89% | $6,119 | $9,717 |
| 6 | $450,750 | 1-yr posted | 3.89% | $5,961 | $5,961 |
With 30 months left, BMO would charge about $9,956, number 4 of six from cheapest for this mortgage (RBC $7,585, CIBC $19,555). If BMO’s posted rates fell a point before you broke, it would rise to $21,807. Using the largest lump-sum privilege BMO states (20% of the original amount) first ($100,000) would bring it to $7,856.
An estimate from this site’s engine, simple interest over the months left; BMO’s written payout figure governs. Price your own BMO mortgage.
Portability
- Portable Mortgage Option: transfer the terms of a fixed closed mortgage (or Homeowner ReadiLine fixed closed instalment) to a new mortgage of the same type without a prepayment charge; extra money is blended at the current fixed posted rate (subject to qualification). [BMO, checked Nov 2, 2026]
HELOC and readvanceable: BMO Homeowner ReadiLine
- Borrow up to 80% of your home’s value and split it between a mortgage portion and a revolving line-of-credit portion; the line of credit cannot exceed 65% of the property value. [BMO, checked Oct 31, 2026]
- As you pay down the mortgage portion, that principal becomes available to re-borrow through the line, up to 65%; anything above 65% must be in an amortizing instalment. [BMO, checked Oct 31, 2026]
- The line-of-credit rate is variable, based on BMO’s Prime Rate plus an adjustment factor; the plan must be registered in first priority on title. [BMO, checked Oct 31, 2026]
Renewal
- Existing BMO customers can renew as early as 180 days before the end of the term without penalty; earlier than that, a prepayment fee applies. [BMO, checked Oct 31, 2026]
Other features worth knowing
- Posted and special rates are shown separately for amortizations under and over 25 years. [BMO, checked Nov 2, 2026]
BMO’s regular closed mortgages carry the most generous privileges here (20% / 20%); Smart Fixed trades them down to 10% / 10% for a lower rate, a fair swap if you won’t prepay much. Its 180-day early renewal is one of the two widest windows of the six.
Official BMO pages
- BMO mortgage rates
- BMO prepayment calculator
- BMO Homeowner ReadiLine
- Institution profile (regulator, deposit insurance): BMO Bank of Montreal on CanadianBanks.ca
BMO mortgage questions
What is BMO Smart Fixed?
A fixed-rate mortgage that BMO prices below its regular 5-year fixed (5.14% special vs 5.99% Smart Fixed posted on November 2, 2026), with 10% prepayment privileges instead of the 20% BMO gives on its other closed mortgages.
How early can I renew with BMO?
BMO says existing customers can renew as early as 180 days before the end of the term without penalty.
Sources
- Today’s mortgage rates — BMO, checked Nov 2, 2026
- Paying off your mortgage faster (prepayment privileges, prepayment charges, portability) — BMO, checked Nov 2, 2026
- The Smart Fixed Mortgage — BMO, checked Oct 31, 2026
- Homeowner ReadiLine — BMO, checked Oct 31, 2026
- Standard charge mortgage terms (Ontario, Aug 2024): comparison term and tie rule — BMO, checked Nov 1, 2026 (MITEY research; bmo.com blocks direct downloads)
- How to renew your mortgage — BMO, checked Oct 31, 2026
Educational information only, not financial, legal or tax advice. BankMortgages.ca is independent and is not affiliated with, endorsed by or paid by any bank named on this site. Bank terms change: confirm every rate and term with the lender and the official sources linked on each page before you act. Read the full disclaimer.
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Last checked November 2, 2026. Spot something out of date? Tell us at hello@mitey.ca.
