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Business Insider's personal finance team compared BMO (formerly BMO Harris) to the best mortgage lenders and found its offerings to be fairly standard, with a number of strengths and a few weaknesses.
BMO stands out in offering down payment assistance for those in underserved communities and affordable mortgages for first-time homebuyers. We found its average origination fees to be on the low end, and it offers a strong variety of loan products. But the lender lacks rate transparency and suffers in customer satisfaction.
620
3%
Conforming, FHA, jumbo, construction, physician, cross border-mortgage program, Neighborhood Home Loan Product, home equity loan, HELOC
- Down payment assistance available
- Offers multiple affordable mortgage options
- Has a mortgage for Canadians buying in the U.S.
- Government-backed loans allow scores down to 580
- Must speak with a loan officer to get prequalified
- Can’t see current rates online
- Ranks low in customer satisfaction
- Available in all 50 states and Washington, DC
- Minimum credit score and down payment displayed are for conforming mortgages
What to Know About BMO Mortgages in the U.S.
BMO is a North American bank that serves both Canada and the U.S. Our review is just focused on the bank's U.S. mortgage offerings.
Where Does BMO Lend Mortgages?
BMO is available in all 50 states and Washington, D.C. If you're ready to submit an application, you can get started online or over the phone. If you're just looking to get an idea of what you can afford, you can fill out an online form to request a call back.
BMO Loan Options
BMO offers the following types of mortgages:
- Conforming loans
- FHA loans
- VA loans
- Jumbo mortgages
- Physician mortgages
- Construction loans
- Interest-only mortgages
- A cross-border mortgage for Canadians buying a house in the U.S.
- HFA loans
- Home equity loans
- HELOCs
- Neighborhood Home Loan Product
The Neighborhood Home Loan Product requires that borrowers contribute at least 1% of the purchase price from their own funds, and offers between $1,000 and $7,500 in down payment and closing cost assistance. No private mortgage insurance is required. You'll need a 640 credit score to qualify.
BMO Welcome Home Grant Program
BMO borrowers who meet eligibility requirements can get down payment assistance in the form of a grant from this lender. BMO's Welcome Home Grant offers up to $13,000 or 3% of the purchase price in assistance for borrowers who are members of a minority group or are purchasing in a minority census tract. This grant is available in select counties in Arizona, California, Illinois, Indiana, Minnesota, Missouri, and Wisconsin.
Additionally, borrowers getting a mortgage in a low-to-moderate income census tract could get up to $3,000 in certain counties in Arizona, California, Colorado, Florida, Iowa, Idaho, Illinois, Indiana, Kansas, Minnesota, Missouri, North Dakota, Nebraska, New Mexico, Nevada, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin, and Wyoming.
BMO Mortgage Interest Rates and Fees
In our review of Home Mortgage Disclosure Act data, we found BMO's mortgage rates to be around average.
In 2022, the average borrower getting a conventional loan from this lender paid $2,119 in origination charges, according to HMDA data. This is on the low end compared to other lenders.
BMO Mortgage Overall Lender Rating
Loan Types: 4.5 out of 5
BMO offers a wide variety of mortgages, including home equity loans, HELOCs, and more niche types of loans like physician mortgages and its cross-border product for Canadians purchasing a home in the U.S. It does not offer USDA loans.
Affordability: 5 out of 5
We think BMO is a very affordable mortgage lender thanks to its low average fees and the fact that it offers multiple types of mortgage and assistance for first-time and low-income borrowers.
Customer Satisfaction: 2.8 out of 5
On WalletHub, BMO currently has a 2.8 out of 5 star rating, based on over 1,600 customer reviews.
Trustworthiness: 5 out of 5
BMO has an A+ rating from the Better Business Bureau. The BBB measures trustworthiness based on response to customer complaints, honesty in advertising, and transparency about business practices.
BMO Mortgage Pros and Cons
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BMO Might Be a Good Choice if You're a First-Time Homebuyer
BMO has a specialty mortgage called the Neighborhood Home Loan Product that allows low down payments and can be combined with down payment assistance to keep your out-of-pocket costs low. Low down payment mortgages are especially helpful for first-time buyers, who typically have less cash available for a home purchase.
You can also get a conforming loan with just 3% down from this lender, an FHA loan with just 3.5% down, or a zero-down VA loan.
BMO also offers down payment assistance grants for borrowers in eligible areas.
Get a VA Loan From BMO With a Lower Score
The minimum credit score you'll need to get an FHA or VA loan with this lender is 580. While this is a common score requirement for FHA loans, VA loan lenders frequently require scores of at least 620. So if you're having trouble qualifying for a VA loan, you might have some luck with BMO.
You Can't Explore BMO's Current Rates Online
We don't like that BMO doesn't display any of its current rates online. To get an idea of what you might pay with this lender, you'll need to start an application or talk to a loan officer.
What Borrowers Are Saying About BMO Mortgages
Business Insider looked at positive and negative customer reviews, online forums, BBB complaints, and other sources to understand what borrowers think about BMO's mortgage process.
Some Borrowers Have Had Issues With BMO's Customer Service
We saw some complaints from previous borrowers that they had trouble getting ahold of company representatives or that they had issues during the approval process. Homeowners who currently have loans with BMO have also complained that customer service was unhelpful in getting their payment issues resolved.
Compare BMO to Other Mortgage Lenders
BMO vs. Chase Mortgages
BMO and Chase are both strong options for borrowers looking for affordable mortgage products.
Chase's DreaMaker mortgage is geared toward low-income borrowers and allows low down payments with reduced mortgage insurance costs. It can also be combined with its Chase Homebuyer Grant, which offers up to $7,500 in closing cost or down payment assistance. Chase's average rates and fees are also relatively low.
Which of these lenders is right for you depends on your needs and your finances. Because they have similar offerings, it might be worth getting preapproved with both to see who can offer you the best deal.
BMO vs. Bank of America Mortgages
Bank of America also offers a lot of assistance for cash-strapped borrowers. It offers low and no down payment mortgage options plus up to $7,500 in closing cost assistance and up to $10,000 in down payment assistance.
Bank of America also has low average rates and fees, and is an overall affordable mortgage lender. But it doesn't offer as wide a range of loan types as BMO.
Bank of America Mortgage Review
BMO Mortgage FAQs
BMO's mortgage rates are around average compared to other lenders, according to our review of HMDA data.
BMO's doesn't rank as highly in customer satisfaction as some of the other mortgage lenders we've reviewed. Based on the customer reviews we looked at, some borrowers have issues with this lender.
BMO is a subsidiary of Bank of Montreal.
It typically takes between 30 and 45 days to close on a mortgage, regardless of the lender you're working with. But it depends on the details of your loan.
If you're considering BMO but also want to explore some alternatives, you might want to get preapproved with some smaller, local mortgage lenders or credit unions to see if they can offer you a better deal.
Why You Should Trust Us: How We Reviewed BMO Mortgage
For our review of BMO, we used our methodology for reviewing mortgage lenders.
We look at four factors — loan types, affordability, customer satisfaction, and trustworthiness — and give each a rating between 1 and 5, then we average these individual ratings for the overall lender rating. Lenders get higher ratings if they offer a large number of loan types with affordable features, have positive customer reviews, and don't have any recent public controversies.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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