BMO penalty calculator
BMO Bank of Montreal mortgage penalty calculator
Estimate what it would cost to break a BMO fixed mortgage, using BMO’s own posted rates (October 31, 2026) and the penalty rule BMO publishes. Then see whether breaking pays and how waiting cuts the cost.
BMO Bank of Montreal · estimated cost to break today
$7,080 to $16,197
Range: formula not fully published
BMO’s formula isn’t on its public pages, so this is a range between common methods. Get BMO’s written payout figure.
Moving to 5.14% would save about $7,852 in interest over the 22 months left, so you’d be $8,346 behind after the penalty (high end). Waiting for renewal, or porting, is likely cheaper.
Break-even new rate: 4.13%. Below that, breaking pays before your current term would have ended. Ignores legal, appraisal and discharge fees.
Waiting cuts the penalty
If posted rates stay where they are, waiting 6 months brings the estimate to $8,269; at maturity it’s $0. Early renewal at BMO: Up to 180 days early, no penalty.
Three ways to pay less
- Prepay first. Using this year’s privilege first lowers the base the penalty is charged on (up to 20% payment increase or lump sum (product-dependent); smart fixed is 10% / 10%.)
- Port instead of breaking. Not stated on the BMO pages we could read; ask BMO.
- Blend and extend. FCAC describes early renewal at a blended rate as a way to avoid a full penalty. Ask BMO for a quote.
BMO’s own penalty page ↗ · always get the bank’s written payout figure.
The same mortgage at each big bank
Same balance, rate, discount and time left, priced with each bank’s own posted table (Oct 31, 2026) and the formula it publishes. This shows how much the bank’s penalty rule and posted table matter.
| Bank | Compares with | 3 months’ | Estimated penalty |
|---|---|---|---|
| RBC | 2-yr posted 5.74% | $7,080 | $9,377 |
| TD | 2-yr posted 5.39% | $7,080 | $12,361 |
| Scotiabank | 2-yr posted 5.24% | $7,080 | $13,640 |
| CIBC | 2-yr posted 5.24% | $7,952 | $13,640 |
| National Bank | 2-yr posted 5.24% | $7,080 | $7,746–$14,140 |
| BMO | 2-yr posted 4.94% | $7,080 | $7,080–$16,197 |
Estimates use simple interest over the months left (as in FCAC’s example); RBC, TD and Scotiabank say they discount to present value, which lowers the real figure somewhat. Today’s month is taken from your device; rates are as published on October 31, 2026.
BMO’s rule, in its own words
- BMO’s penalty formula was not on the web pages we could read. BMO publishes a prepayment calculator and a “Mortgage prepayment options” PDF; use those or ask BMO for a payout quote.
BMO posted rates used in the calculation
| Term | Posted rate |
|---|---|
| 1-year | 5.49% |
| 2-year | 4.94% |
| 3-year | 6.05% |
| 4-year | 5.99% |
| 5-year | 6.09% |
| 6-year | 6.29% |
| 7-year | 6.40% |
| 10-year | 6.80% |
Online estimates are a starting point. Ask BMO for a written payout statement before you sign anything with another lender, or try BMO’s own calculator.
Frequently asked questions
How does BMO calculate its mortgage prepayment penalty?
See BMO’s prepayment calculator and prepayment-options PDF (formula not on the pages we could read). See the BMO profile for the bank’s exact wording and source.
Which BMO posted rate is used?
The posted rate for the term closest to the time left in your term. BMO’s posted fixed rates on October 31, 2026: 1-year 5.49%, 2-year 4.94%, 3-year 6.05%, 4-year 5.99%, 5-year 6.09%, 6-year 6.29%, 7-year 6.40%, 10-year 6.80%.
How can I lower a BMO penalty?
Use your prepayment privilege first (up to 20% payment increase or lump sum (product-dependent); smart fixed is 10% / 10%.), ask about porting (not stated on the bmo pages we could read; ask bmo.), or wait: up to 180 days early, no penalty.
Sources
- Today’s mortgage rates — BMO, checked Oct 31, 2026
- Mortgage prepayment calculator — BMO, checked Oct 31, 2026
- Reduce or avoid prepayment penalties — FCAC, checked Oct 31, 2026
Keep exploring
Other banks: RBC · TD · Scotiabank · CIBC · National Bank
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