U.S. Mortgages & Borrowing footnote star^*

Your BMO Private Wealth professional will introduce you to a BMO U.S. Mortgage Banker who is specially trained to help Canadians apply for mortgages in the U.S. If you go directly to a BMO U.S. branch, the branch representative won’t be able to see the relationship you have with BMO Private Wealth in Canada. You will miss out on exclusive U.S. servicing and benefits that are available to you as a BMO Private Wealth client.

No. If you require a mortgage to finance the purchase of a U.S. home or property you need a mortgage from a U.S. lender. However, if you have equity in a Canadian home or property you may be able to borrow against your Canadian property to pay for a U.S. property. Keep in mind that Canadian funds will need to be converted to U.S. funds.

No. With BMO U.S. you can apply for a U.S. mortgage using your Canadian credit history if you do not have a U.S. credit history.

No. The U.S. mortgage industry is more regulated than the Canadian mortgage industry. This affects how long it takes to apply for a mortgage, how much documentation is required and may mean that you pay more in third party fees. U.S. mortgages tend to have longer terms than Canadian mortgages. With American mortgages full amortization and payment take place over the life of the loan. In Canada the homeowner has to renew or refinance at the end of each term.

In the U.S., if you want to switch to a different type of mortgage you need to reapply.

For example, if you want to switch from an Adjustable Rate Mortgage to a Fixed Rate Mortgage, you need to reapply and go through the mortgage approval process again.

The down payment amount required can vary based on your credit history. Speak to your BMO Private Wealth professional or a BMO U.S. Mortgage Banker for additional details.

The norm is for customers to attend the mortgage loan closing in person at the location of the U.S. title company. Talk to your BMO U.S. Mortgage Banker for details.

No. With BMO U.S. there are no penalties for making additional mortgage payments or paying off your mortgage in full before the end of the mortgage term.

To make an additional payment against your mortgage you can: mail a cheque written on a U.S. bank account to your BMO U.S. branch, make an online transfer from a BMO personal chequing account or phone BMO Telephone Banking.

If you have a mortgage, refinancing with BMO U.S. may allow you to lower your interest rate and monthly mortgage payment.

To pay off your mortgage in full you need to obtain a mortgage payoff letter which will advise you how much you owe and where to send the payment. You can obtain the payoff letter either by requesting it from your BMO Private Wealth professional or visiting a BMO U.S. branch who will request the mortgage payoff letter on your behalf.

Third party fees are fees for expenses incurred by outside parties that are necessary to assess and complete a mortgage application. Some examples of third-party fees are appraisals, survey fees, title search and attorney closing fees.

If you pay taxes in the U.S. and you meet the qualifications for being able to deduct mortgage interest, this may be possible. You should speak with a U.S. tax professional to discuss your situation.

This will depend on your personal financial situation and how you feel about where the value of the Canadian dollar is relative to where the U.S. dollar is headed.

It takes an average of 30-60 days from the time of application for a Home Equity Line of Credit or a Home Equity Loan to be completed. If you apply for a mortgage with BMO U.S. and a home equity loan or line of credit at the same time, you only have to go through the approval process once.

The HELOC will be set up as an account and you can withdraw funds as needed. You can write cheques, or transfer funds to your BMO U.S. personal chequing account with BMO Digital Banking (U.S.) or at a BMO U.S. branch.

A Home Equity Loan is a lump sum loan that you can pay off in various terms. Your monthly payments remain the same for the life of the loan. 

A HELOC lets you borrow up to your credit limit as needed for the first 10 years with only interest-only payments required during that time. After the first 10 years, the HELOC converts to a loan with a 20-year term. During this time, you make monthly payments and your interest rate fluctuates as market rates change. Plus, you only pay interest on the amount you actually use. If you obtain a HELOC for $10,000, but only need $2,000, you only pay interest on $2,000.

No. With a U.S. HELOC you have only 10 years to use funds up to your credit limit, after that it converts to a loan with a payback period of 20 years and a variable interest rate. With a Canadian HELOC you can continue to withdraw and pay back funds as you need. As long as you keep up-to-date with your minimum payments and do not exceed your limit your line of credit can be used indefinitely.

It depends on your needs and preferences. If you like to know exactly how much you will be paying and for how long, you could consider a HELOAN. If you don’t know precisely how much you will need and don’t want to borrow more than you need, a HELOC may be a better choice for you.