Bank of Montreal (BMO)

A mortgage buy-down is when a presale developer pays upfront to reduce your interest rate — either temporarily (2-1 buy-down) or permanently. In a 2-1 buy-down, your rate is reduced by 2% in year one and 1% in year two before normalizing. In a permanent buy-down, the developer pays discount points — typically 1% of the loan amount per 0.25% rate reduction. On an $800,000 BC presale, a developer contributing 2 points ($16,000) can reduce your rate permanently by 0.5%. This incentive is increasingly common as BC developers work to move presale inventory in the current market. Learn how to evaluate presale developer incentives in our free guide at https://homepathways.ca/wealth-transfer/mortgage-rate-buydown-bc-2026 and https://homepathways.ca/who-we-serve/presale-investors/presale-vs-resale-analysis-bc

When a BC property owner passes away, the estate enters probate — a legal process that typically takes 6-9 months before the executor can sell or transfer the property. During this period, the existing mortgage continues and must be serviced by the estate. If the executor needs to sell before probate completes, they can apply for a transmission of title and work with the lender to either maintain, port, or discharge the mortgage. Breaking a mortgage mid-term triggers an Interest Rate Differential (IRD) penalty that can reach tens of thousands of dollars on BMO mortgages. A forensic approach maps the penalty before any decision is made. Read our complete probate real estate guide at https://homepathways.ca/wealth-transfer/bc-probate-fees-calculator-2026

Bridge financing is a short-term loan that covers the gap between buying your new home and receiving proceeds from selling your current one. It's most common in rightsizing situations where you've found your ideal downsized home but your current property hasn't sold yet. BMO bridge loans typically run 30-120 days at prime plus a spread, secured against the equity in your existing home. The key is having a firm sale agreement in place — most lenders require a signed purchase and sale agreement before approving bridge financing. Understand the full rightsizing financial timeline at https://homepathways.ca/who-we-serve/retiring-rightsizers/equity-unlock-bc

Yes — BMO accepts gifted down payments from immediate family members for insured mortgages (under 20% down). The gift must be documented with a signed gift letter confirming it is not a loan and does not need to be repaid. The funds must be in your account for a minimum period before closing — typically 90 days for conventional mortgages. This is particularly relevant in BC's wealth transfer situations, where parents help adult children enter the market using home equity. However, gifted down payments that are actually loans can constitute mortgage fraud — forensic documentation is critical. Learn about gift of equity risks at https://homepathways.ca/who-we-serve/wealth-transfer/gifting-money-child-house-bc

When an estate property is sold, the existing mortgage is discharged from the sale proceeds before the estate receives any funds. If the mortgage is in a fixed term, an Interest Rate Differential (IRD) penalty applies — calculated as the difference between your contract rate and BMO's current rate for the remaining term, multiplied by the outstanding balance and remaining months. On a $600,000 mortgage with 2 years remaining, this penalty can exceed $30,000 in a falling rate environment. Executors should request a mortgage payout statement and penalty calculation before accepting any offers. Our probate coordination service maps every cost before you commit. Start with our free executor guide at https://homepathways.ca/wealth-transfer/bc-probate-fees-calculator-2026

A presale assignment occurs when the original buyer transfers their contract to a new buyer before completion. The new buyer assumes the original purchase price plus an assignment fee, and must arrange fresh financing since no mortgage exists yet — only a contract. BMO can finance presale assignments, but the qualification is based on the new buyer's income and credit, not the original buyer's. Key risks include: the developer may restrict assignments in the contract, GST applies to the assignment fee, and financing must be arranged with limited time before the completion date. A forensic review of the assignment contract before you commit is essential. Read our presale investor guide at https://homepathways.ca/who-we-serve/presale-investors/trapped-assignor-flipping-tax-bc

BC relocation mortgages have specific considerations depending on your income source and residency status. If relocating from another Canadian province, BMO can use your existing employment history and credit file. If relocating from outside Canada — particularly common with UAE and international relocations to BC — you may qualify under BMO's New to Canada program, which accepts alternative credit documentation and international employment letters. Down payment requirements are typically higher for new arrivals (minimum 35% for non-residents). Homepathways has dedicated guides for both domestic relocation and UAE-to-BC transitions. Learn more at https://homepathways.ca/who-we-serve/relocating-families/international-landing-bc and https://homepathways.ca/who-we-serve/relocating-families/alberta-to-bc-tax-shock