News Releases

BMO Bank of Montreal is offering customers who obtain a new or refinanced mortgage greater peace of mind by paying for a Home Warranty program on their behalf. The new program protects homebuyers against the cost of unexpected breakdowns to vital home systems including mechanicals and major appliances.

This program meets a need in the market for purchasers of existing (re-sale) homes to protect themselves from the unexpected costs of repairing non-structural elements including the furnace, central heating, emergency plumbing, and appliances such as stoves, refrigerators, washers and dryers. These items often cost homeowners thousands of dollars in repair or replacement bills at a time when they are the least financially flexible - in the first few months or years after the purchase of their home.

"Buyers of new homes have long had access to a warranty program but buyers of existing homes have had few options," said Maria Racanelli, vice president, BMO Bank of Montreal. "There is nothing more disappointing than buying a home and within months being faced with unexpected and unbudgeted costly repair bills on items that most of us take for granted. This warranty will allow the homeowner to achieve peace of mind knowing that they are protected."

According to UNIRISC Services Corp., the provider of the new BMO Home Warranty program, buying a home warranty is a fairly new concept for Canadian homebuyers but it is extremely popular in the United States. For example, almost 20 per cent of all U.S. home buyers purchase a home warranty product and that number rises to about 50 per cent of buyers in Texas and a staggering 87 per cent in California.

Key features of the BMO Bank of Montreal Home Warranty Program are:

• BMO Bank of Montreal customers who take a new mortgage or refinance their existing mortgage for terms of two years or greater can enjoy the Home Warranty Program as a free special offer for the first six months of the mortgage.
• The warranty provides extensive protection on covered items such as central heating systems, emergency plumbing, interior electrical systems, range/hood/oven, refrigerator, washer and dryer.
• BMO mortgage customers can renew the warranty at a special rate.

Established in 1817 as Bank of Montreal, BMO Financial Group (TSX, NYSE: BMO) is a highly diversified North American financial services organization. BMO serves clients across Canada and the United States through its Canadian retail arm BMO Bank of Montreal; BMO Nesbitt Burns, one of Canada's leading full-service investment firms; and through Chicago-based Harris, an integrated financial services organization that provides personal, business, corporate and institutional clients with a full range of banking, lending, investing and financial management solutions.

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