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BMO Harris Bank Home Equity Loans Review
By Susan Doktor MONEY RESEARCH COLLECTIVE
BMO Harris Bank is a large regional bank that offers a full slate of mortgage loans and refinancing options, including home equity loans, home equity lines of credit (HELOCs) and cash-out refinance loans.
While it didn’t make it into our top picks for the best home equity loans, BMO Harris is a reputable bank whose rates and fees are on par with those of industry competitors. For borrowers who live in any of the nine states where it operates, BMO Harris Bank is an option worth considering.
Table of contents
- BMO Harris Bank’s Home Equity overview
- BMO Harris Bank’s services
- BMO Harris Bank’s credentials
- BMO Harris Bank’s accessibility
- BMO Harris Bank’s customer satisfaction
- BMO Harris Bank FAQs
- How we evaluated BMO Harris Bank home equity loans
- Summary of Sacbee’s BMO Harris Bank review
BMO Harris Bank home equity overview
- Offers five- to 30-year HELOC terms
- Option to lock in up to 100% of your line of credit
- Doesn't charge application fees
- No closing costs on owner-occupied, one to four-family homes
- Only available in nine states
- Charges a $75 annual fee during HELOC draw period
- Rate lock option entails a $75 fee
Home equity loan terms with BMO Harris Bank range from five to 20 years, while HELOCs are available in 5, 10, 15, 20 and 30-year terms. To be eligible for either of these products, borrowers must have a credit score between 650 and 680 and a loan-to-value (LTV) ratio of 70% or below.
There is a fixed-rate lock option for HELOCS available to new applicants and current customers who apply on or before August 31, 2022. Locking in a rate may entail an interest rate adjustment that will depend on the loan term, lock amount and lien position.
Additionally, the minimum HELOC draw amount that can be converted into a fixed-rate loan is $2,000, but there is no maximum. Borrowers who opt for the fixed-rate option must pay a $75 fee in addition to the $75 annual fee applicable during the draw period.
BMO Harris Bank does not charge application fees for its HELOCs or home equity loans and will pay closing costs for loans secured by owner-occupied, one to four-family homes. Closing costs may include appraisal, credit report, flood determination, title insurance and recording fees as well as mortgage and government taxes.
If you live in a flood zone, you may be required to carry flood insurance.
BMO Harris Bank services
From fixed and variable-rate home equity products to personal loans and credit cards, BMO Harris Bank offers a robust lineup of financial products.
What’s offered
- Home equity loans
- Home equity lines of credit
- Cash-out refinancing
- Fixed-rate lock option on HELOCs
- Checking and savings accounts
- Credit cards
- Jumbo loans
- Personal loans
- Auto, RV and boat loans
- Investment services
What’s not offered
- Loans in all 50 states
- Crypto-collateralized home loans
BMO Harris Bank’s credentials
BMO Harris Bank was founded in 1982. Over the years, the number of services the bank offers has increased, becoming a full-service institution. It is licensed to do business in nine states across the country. BMO Harris is an Equal Opportunity Lender and FDIC member.
Licenses and registrations
BMO Harris Bank is licensed by the National Mortgage Licensing System. Its NMLS number is 401052.
It offers investment services for consumers and commercial customers. However, BMO Harris is not registered with the SEC or a member of FINRA.
Third-party ratings
BMO Harris earns a Baa-1 issuer rating from Moody’s, which means the rating organization deems the bank to be subject to moderate credit risk. The bank fares better with its “Stable” rating from Standard and Poors.
Fitch awards BMO Harris Bank an F1+ rating, its highest short-term credit outlook rating, and an AA- rating for its long-term credit outlook. These ratings indicate Fitch’s confidence in the lending institution.
Regulatory and legal actions
We searched the National Mortgage Licensing System’s database and found that the BMO Harris Bank has not been subject to any NMLS regulatory actions in recent years.
The Consumer Financial Protection Bureau reports that, over the past three years, a total of 770 complaints have been lodged against BMO Harris Bank. Of those, 134 involved mortgage products and 43 referred specifically to home equity lines of credit. However, these must be seen in the context of the total number of mortgages the bank originates each year.
BMO Harris Bank’s accessibility
BMO Harris does a good job of providing customers with 24-hour access to services and support in both English and Spanish. It also accepts calls made via Telecommunications Relay Service (TRS), which facilitates two-way communications for those with hearing or speech disabilities. This service is typically free and available 24 hours a day.
Availability
BMO Harris operates online and through its 600 branches. However, it only services the following states:
- Illinois
- Wisconsin
- Indiana
- Kansas
- Missouri
- Minnesota
- Arizona
- Florida
- California
Contact information
You can reach BMO Harris Bank at (888) 340-2265 or via its social media pages, including Facebook, LinkedIn and Twitter.
If you prefer personalized service, you may instead visit one of over 600 BMO Harris Bank branch locations. A branch locator can be found on the bank’s website.
User experience
BMO Harris Bank’s website offers a number of resources that can help you compare various loan options, loan scenarios and potential interest rates. These include a HELOC calculator, a loan document checklist in PDF format and a number of articles that offer basic home equity loan information.
On its website, BMO Harris Bank publishes the lowest interest rate it offers on home equity loans and home equity lines of credit. Rates are updated daily and include an auto-pay discount. While these are not final rates, they can provide helpful context when shopping for loans.
BMO Harris Bank’s customer satisfaction
BMO Harris Bank has a relatively small number of CFPB complaints compared to its annual loan origination volume.
The Better Business Bureau awards BMO Harris Bank an A+ rating. But consumer opinions registered on that site are at odds with its high rating: the bank earns just 1.07 out of 5 stars. On Trustpilot, the bank has a rating of 2.2 out of 5 stars based on just 15 reviews.
Customer complaints
Over the past three years, a total of 366 complaints have been filed against BMO Harris through the BBB and subsequently closed. A quick scan of complaints filed against the company revealed a large number of comments regarding the BMO Harris’ checking account and not receiving expected bonus payments.
The majority of complaints filed by customers on Trustpilot focus on unexpected account freezes. None of the negative reviews involve home equity loans.
BMO Harris Bank FAQs
What is the current interest rate for BMO Harris Bank?
As of August 5, 2022, BMO Harris is advertising lowest rates of 5.49% APR for HELOCs and 7.19% APR on home equity loans.
Bear in mind that lenders determine the interest rates they offer you by looking at several criteria, including your credit score and loan-to-value ratio (LTV).
What credit score do you need for a BMO Harris Bank loan?
The bank reports that you will need a minimum credit score between 650 and 680 to be approved for a loan. That's a little higher than some lenders require.
What are home equity requirements through BMO Harris Bank?
To be approved for a loan through BMO Harris Bank, you must meet the following:
- Have at least 20% equity in your home
- Have a minimum credit score between 650 and 680
- Have a loan-to-value ratio of 70% or lower
How do you apply for a home equity loan through BMO Harris Bank?
You can check estimated rates and apply for a home equity loan or HELOC directly online. You can also visit one of BMO Harris Bank's branches if you'd like to have the guidance of a loan officer.
What loan terms does BMO Harris Bank offer?
When you open a HELOC through the bank, your draw period will typically be 10 years. Most banks offer 5, 10, 15 and 20 year terms, but BMO Harris Bank also offers a 30-year loan term. That's one way the company stands out from the competition.
How we evaluated BMO Harris Bank home equity loans
Homeowners like options. Their financial goals and circumstances, as well as their reasons for wanting to access their home equity, vary widely. We give BMO Harris Bank credit for the choices it provides borrowers: home equity loans, HELOCs (both fixed and variable rate options) and cash-out refinance loans.
We also took the bank’s financial stability based on third-party ratings. We looked into how easy it is to find educational resources and rates on the company’s website.
Summary of BMO Harris Bank review
BMO Harris Bank is a long-established financial institution that offers customers a choice of popular ways to refinance their homes. Fees for home equity products are in line with industry standards.
Financial rating companies generally have a good opinion of the bank’s financial stability. BMO Harris offers a wide range of contact methods and also operates many branches throughout its service area for borrowers who want a more personalized experience or need some extra guidance.
Our take? If you live in BMO Bank Harris’s service region, the company is definitely worth a look.
