4.60% from BMO is above the bank average (4.29%) and closer to the posted-rate ceiling of 5.99%. Here is what that means in dollars and whether it is worth negotiating before you sign.
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The rate in question.
Bank of Canada insured 5yr fixed average.
Typical uninsured 5yr fixed rate.
Negotiation starting point.
4.60% from BMO is above the bank average (4.29%) and closer to the posted-rate ceiling of 5.99%. The Bank of Canada insured 5-year fixed mortgage average — the rate that lenders with government-backed mortgages are collectively writing — is approximately 4.04%. The uninsured 5-year fixed average is approximately 4.29%.
At 4.60%, this offer is above the bank average and approaching the posted-rate ceiling. This is above what negotiated borrowers typically pay. It is worth calling BMO's retention team before signing.
This is for informational purposes only and is not financial advice. Verify current rates directly with your lender and the Bank of Canada.
On a $500,000 mortgage with 25-year amortization, paying 4.60% instead of the benchmark represents approximately $1,851 more per year in estimated interest costs compared to the benchmark. Over a 5-year term, that is an estimated $9,255 more than a benchmark-rate mortgage. These are estimated figures using Canadian semi-annual compounding. Your actual numbers depend on your balance, amortization, and term.
Bank of Montreal is one of Canada's founding chartered banks and a top-three mortgage lender. BMO renewal rates are broadly in line with Big Six averages. BMO has periodically offered cashback or promotional fixed-rate products, which can affect the effective rate comparison.
An offer of 4.60% from BMO is above the bank average. Before signing, request a competing quote from a mortgage broker and call BMO's retention department with that quote as a reference.
Before signing your BMO renewal, take these steps:
Switching lenders at maturity does not incur a penalty, but it does trigger a new stress test. If BMO matches or beats the competing offer, staying is usually the simpler path.
4.60% from BMO is above the bank average (4.29%) and closer to the posted-rate ceiling of 5.99%. It is above the bank average of approximately 4.29%, which means this offer is worth reviewing before you sign. This information is for general reference only and is not financial advice.
The Bank of Canada insured 5-year fixed average is approximately 4.04% and the uninsured average is approximately 4.29%. A rate of 4.60% is above the bank average range. Data sourced from Bank of Canada Valet.
Yes. At 4.60%, your BMO offer is above the bank average and worth negotiating. Call the retention team (not the branch) and present a competing broker quote. Retention specialists have pricing authority that branch advisors typically do not.