BMO Mortgage Renewal: Review Your Offer Before You Sign

How BMO calculates your prepayment penalty

• Closed fixed-rate mortgage: BMO says the prepayment charge is the higher of three months’ interest calculated at the applicable fixed interest rate or an amount calculated using the interest rate differential (IRD).
• BMO describes the IRD as the difference between your existing mortgage interest rate and the current posted rate for a mortgage similar to yours for the remaining term, taking into account any rate discount you may have received.
• Closed variable-rate mortgage: BMO says the charge is three months’ interest based on the rate on the day of prepayment.
• Terms longer than five years: BMO says that if you prepay after the fifth year of the term, the charge is three months’ interest.
• Last three months of the term: BMO says the charge on any closed mortgage is the interest on the amount you are prepaying, at the rate applicable on the date of prepayment.
• Prepayment privileges: BMO says you can make lump-sum prepayments each year without a charge of up to 10% of the original mortgage amount for a BMO Smart Fixed Mortgage, or up to 20% for other closed mortgages.

Reviewed 2026-10-11 from BMO's own pages. Your mortgage agreement and BMO's payout statement determine the actual charge.

This is an estimate only. Confirm the method and the exact figure with BMO, or ask for a dated payout statement covering any discharge, assignment or other fees, before you act.

Sources: BMO: how prepayment charges are calculated

Is your BMO renewal offer too high?

Compare the written rate with dated context for the same term, rate type, insurance status and product conditions. A gap is a reason to investigate; an advertised rate does not establish that you qualify or that your lender's offer is unfair.

Have the balance, remaining amortization, scheduled payment and renewal deadline ready. Review prepayment privileges, penalties, portability, fees and any actual competing offer together.

Ask BMO to review your renewal rate

Adapt this request to the written offer you received:

I am reviewing my BMO mortgage renewal offer before signing. Please confirm the quoted rate, term, rate type, scheduled payment, remaining amortization, penalty wording, prepayment privileges, portability, fees and restrictions. Is another renewal option available for my file? Please send any revised offer and its expiry date in writing.

A review request does not guarantee a lower rate. Refer to a competing offer only if you actually have it, and compare its eligibility conditions, product terms and switching costs.

How far in advance can you renew — or see a renewal rate — with BMO?

BMO says existing BMO mortgage customers can renew as early as 180 days before the end of their term without penalty. If you are within that 180-day window, BMO says eligible customers can view personalized renewal rates through BMO Online Banking or the BMO Mobile Banking App.

Do not confuse that renewal window with BMO's separately advertised 130-day rate guarantee for some new or switching mortgage offers. For an existing BMO mortgage renewal, use the personalized renewal options shown for your account and confirm the rate, expiry date, term, payment, and other conditions before accepting.

Source: BMO mortgage renewal process

What a BMO renewal offer does — and does not — prove

A renewal letter tells you what BMO is offering under the written terms shown. It does not, by itself, prove that the offer is fair, unfair, the lowest available rate, or the best overall mortgage for your circumstances.

Review the exact rate, term, fixed or variable structure, scheduled payment, remaining amortization, penalty wording, prepayment privileges, portability, fees, promotional conditions, cashback terms, collateral-charge terms, and other material restrictions together.

How to compare your BMO renewal rate

Start with the same term and product structure as the written offer. A public advertised rate for a different mortgage type, insurance status, transaction, lender channel, or borrower profile is not automatically a valid alternative.

If your BMO offer is a supported Canadian 3-year or 5-year fixed renewal, FairRate can place that written rate beside current dated comparison context and scheduled-payment information. It does not claim that a comparison rate is guaranteed or available to you.

Questions to ask BMO before signing

• What exact rate, term, and fixed or variable structure am I being offered?
• What scheduled payment and remaining amortization are being used?
• How is an early-break penalty calculated?
• What prepayment privileges and payment-increase options apply?
• Is the mortgage portable, and under what conditions?
• Are there fees, cashback terms, promotional conditions, collateral-charge terms, or other restrictions?
• When does the renewal offer expire?
• Can the lender provide the final material terms in writing before I decide?

Ask BMO whether another renewal option is available

You can ask the lender to explain the offer and whether another renewal option is available. Request the final rate, term, payment assumptions, penalty wording, prepayment privileges, portability, fees, and material restrictions in writing.

Do not claim that another lender has guaranteed you a lower rate unless you have an actual written offer. FairRate does not promise that BMO will improve an offer or that a public advertised rate is available to a particular borrower.

Comparing BMO with another lender at renewal

A lower headline rate can be attractive, but a same-lender renewal, straight lender switch, refinance, increased borrowing request, amortization change, borrower change, and other material changes can involve different qualification, documentation, fee, penalty, and timing requirements.

Before relying on an apparent rate difference, verify any discharge or transfer charges, appraisal, legal or notarial, title-insurance, registration, administration, promotional, and other possible costs or restrictions for the exact transaction.

Current FairRate Canada scope

FairRate Canada's benchmark-backed free checker and paid benchmark reports currently support Canadian 3-year and 5-year fixed renewal offers. A variable-rate or other-term offer should not be forced against those fixed-term references.

FairRate is not a lender, mortgage broker, mortgage agent, brokerage, law firm, underwriter, or financial advisor. It does not provide mortgage approval, guarantee another rate, or promise savings or a particular negotiation or switching outcome.