News Releases

Self-employed business owners now have a better way to finance their home purchases with the launch today of BMO Bank of Montreal's Self-Employed Homeowner Mortgage program.

The BMO Self-Employed Homeowner Mortgage (SEHM) is a new financing product that allows self-employed and commission-based income customers to purchase a home based primarily on the strength of their personal credit rating rather than the strength of their business financial statements.

The SEHM is available in both a high-ratio mortgage (based on as little as a 10 per cent down payment) and in a conventional mortgage form.

“This new homeowner mortgage makes the process of applying for and receiving home financing much easier for self-employed and commissioned based individuals,” said Kathleen O’Neill, Executive Vice-President, Business Banking, BMO Bank of Montreal. “It requires less paperwork and, in many cases, a lower down payment than home business operators and commission income reliant customers have traditionally been asked for."

In addition to the mortgage itself, customers who take advantage of the new program will be able to lower the operating costs of running their business by taking advantage of rewards and discounts offered through BMO. For example SEHM customers may for a limited time get bonus Air Miles reward miles and access to GE's Homebuyers Privileges Program that provides discounts on products and services like GE appliances, Bell ExpressVu, Dell Computer purchase and Canadian Tire on-line purchases.

The Self-Employed Homeowners Mortgage is part of a full line of specialized programs offered to BMO Bank of Montreal's small business customers. BMO is the second largest small business lender in Canada and one of the largest in North America.

BMO Bank of Montreal is a member of BMO Financial Group (TSX, NYSE: BMO), one of the largest financial services providers in North America. BMO Financial Group serves clients across Canada and in the United States through its Canadian retail arm, BMO Bank of Montreal, through its Chicago-based Harris Bank, a major U.S. mid-west financial services organization, and through BMO Nesbitt Burns, one of Canada's leading full-service investment firms.

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