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Dear Potential Client, Selecting someone to accommodate your needs for the purchase of your new home can be confusing. You want to know that you are getting the best rate, the best product, and expect above average service as this is a major life event for people in most cases. Before illustrating specific products to suit your needs I would like to point out some of the tangible and intangible differences that I can offer you as a Bank of Montreal representative, that apply to all products and services we can provide. Why
Choose Bank of As a BMO Mortgage Manager you can expect the highest level of service. I am available to meet you in your home, correspond with you online, on the telephone, and / or by mail. What ever means of communication is most comfortable and convenient for you. As well I place high value on efficiency. You will know ahead of time all or most of the documentation we need to get you a fast approval so you can shop for your new property with the confidence of having your financing already in place. Why call Bank of Montreal instead of an independent broker? - An independent broker will shop around for the best rate. (In many cases they end up partnering you with BMO anyways as we offer the lowest rates) - Bank of Montreal will just offer you the best rate AND charge you no fees. No Fees? What does that mean? Independent brokers charge you for everything. The most common fees are: - Appraisal Fee = $220 - $320 (Mandatory for every mortgage provider to protect you From being over charged and us from over financing) - Finders Fee = $500-$1000 This is the fee they charge you for finding your rate, which they make in addition to the commission the financial institution pays them. Bank
of - Pay your appraisal fee everytime - Charge you no finders fee for giving you a great rate “My broker offered me a rate lower than you guys and I think I will save money even with their fees.” Here is an example of what fees would look like if they were incorporated into your rate rather than charged up front: Say your mortgage is: $150,000.00 And your rate is: 5 % (on a 60 month term, 25 yr amortization) If we combine the fee with the interest you would pay over five years: $35,099.00 + $1320.00 = $36,419.00 Your actual interest rate for The term is: 5.19 % That is almost 0.20 % higher! Rate isn`t always everthing. Here are some of the standard features available on all of BMO`s mortgage products and Services. Flexibility: The majority of our mortgages are - Fully portable, which means if you move your mortgage can move with you, or who buys your house can assume your mortgage saving you a penalty - Can skip a payment if there is an emergency, if you have built up prepayments (on top of your regular payment) there is even more flexibility. Prepayments: - You can put up to 20 % towards the principal (interest free) each calendar year. That means you are not restricted to your anniversary dates, and it doesn`t have to be all at once, it can be spread out with the frequency that is convenient for you. - In addition to the lump sum payments listed above you have the option of increasing your regular payments by up to 20% each year. So effectively you could pay off 40% of your mortgage in one year. Saving you thousands in interest. No other bank offers this flexibility in prepayments. These apply strictly to closed mortgages, open mortgages can be paid off at any time. Mortgage Cash Account: - Every extra dollar you put towards your mortgage through prepayments goes into a mortgage cash account. - A mortgage cash account is funds available that you can re-borrow without having to re-qualify. No other financial institution offers this service. They will all require you to re-qualify and re-appraise your property, costing you time and money. Airmiles: - On a mortgage of over $150,000.00 you will get 500 Airmiles. Less than that amount you still get airmiles, it is tiered by amount. I heard if I put less than 25% down I would have to pay mortgagor's insurance, what does that mean? If you have less than 25% to put down a mandatory insurance premium is added to the amount of your mortgage. This premium insures the bank against your default and is completely unavoidable. That means that no matter where you shop for a mortgage if you have less than 25% to put down you will pay a premium either through CMHC (Canada Mortgage and Housing Corp) or GECAP (Genworth Financial). The premiums are as follows: Down Payment Percentage: 5 – 10% 2.75% 10-15% 2.00% 15-20% 1.50% 20-25% 1.00% So if you had a mortgage for $100,000.00 and $5000.00 to put down, your actual mortgage amount would be $102,750.00. So it is a good idea is you can afford it to have 25% to put down towards your new home. I hope this information helps you make a decision and I look forward to hearing from you! IKE HAWES MORTGAGE MANAGER BMO * 4502 W. 10th Ave, Vancouver,
B.C, 604-377-1419 fax 604-221-2860 |
IKE
HAWES MORTGAGE MANAGER 
BANK OF MONTREAL