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Bemoaning the BMO Cash Back Product

February 3, 2017

Approximately a week ago, BMO launched a new cash back offer aimed at assisting first-time home buyers with money back on their home purchase.

Since then MonsterMortgage.ca has received many inquiries asking about this new offering.

Undoubtedly, as home prices continue to increase, offers such as these and the new tax relief initiative from the Ontario government serve to help first time buyers with some assistance.

Unfortunately, this new cash back product from BMO has many limitations.

The BMO cash back offers first-time home buyers only up to $1000, even less for first-time buyers with mortgages under $250,000. If your mortgage is between $100,000 to $249,999, you will receive $500 cash back. Prospective first-time home buyers who’ve saved for higher down payments need not apply – BMO’s cash back offer isn’t available to you.

Aiding first-time home buyers in today’s competitive real estate market is certainly an admirable initiative for sure, yet upon further investigation, you need to get the facts BMO isn’t telling you about their cash back mortgage.

To receive your cash back — your funds must be deposited into a BMO chequing account. An applicant looking to take advantage of this offer must open a BMO chequing account and a Practical, Plus, Performance, AIR MILES or Premium Plan. So if you’re not currently a BMO banking customer, you’ll be opening new accounts which are required to be open at a minimum of 60 days to keep your cash. Nevermind the service fees your new BMO chequing account will incur…

In addition to the chequing account, customers who receive ‘non-standard pricing or have the appraisal, title insurance, or legal fees reversed will not be eligible for the cash offer’ — meaning you won’t be getting BMO’s best mortgage rate with your cash back offer either.

Although the money back certainly helps, it ‘s hard to justify when you’ll be paying thousands more in interest than necessary when paired with a less than competitive mortgage rate. Consider the BMO posted standard 5-year fixed rate of 4.84% and the ‘special’ [read: non-standard] rate of 2.89%. Although the ‘special’ rate is passable, the standard ‘posted’ rate is far from acceptable.

Let’s look at real cash back in your pocket — for anyone buying a home…

Clients familiar with MonsterMortgage.ca will know about the MonsterMortgage.ca VIP Program. The VIP program is available to all clients, with all down payment sizes who use our realtor partners at the Corbo/Kelos ReMax group in combination with MonsterMortgage.ca’s mortgage services.

Here’s a quick run-down comparing the MonsterMortgage.ca VIP Product and the latest BMO cash back product:


MonsterMortgage.ca VIP Program BMO Cash Back Offer
All Home Buyers Only First-Time Home Buyers
Cash back Cheque Funds Deposited in BMO chequing account
1% of Your Mortgage Amount (No $ Limit) $1000 Maximum Cashback
Market-Leading Mortgage Rates Regularly Priced Mortgage Rates
Preferred Pre-Payment Privledges & Conditions Standard Conditions Apply

So whether you’re buying your first home or your tenth property, the MonsterMortgage.ca VIP Program provides you with a “hassle-free” way to get some cash back on your next purchase — and a lot more of it!

If you have any questions about the latest BMO cash back offer for first-time home buyers or if you want to learn how the MonsterMortgage.ca VIP Program can put more money in your pocket, and not your bank’s, fill out the form at the top of the page and speak to a MonsterMortgage.ca mortgage professional today!