BMO’s 2025 Mortgage Strategy: Focus Shifts to Renewals and Broker Partnerships

Canada’s third-largest bank pivots away from high-risk new lending in tight-rate era
As home sales flatten and new mortgage originations cool, BMO (Bank of Montreal) is making a clear strategic pivot in 2025: doubling down on client renewals and broker relationships, rather than aggressively pursuing new purchases.
In a recent earnings call, executives highlighted a shift in focus toward “retention-first strategy”, with tools and promotions geared at keeping existing clients from switching to rivals — particularly as rates remain sticky and competition for renewals intensifies.

“There’s a lot of churn risk in the market,” said a senior BMO VP. “Our goal is to keep good clients on our books, not chase every deal.”

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Why Renewals Matter More in 2025

With high interest rates squeezing affordability and fewer first-time buyers entering the market, renewals now make up a larger share of lender business. And that’s where BMO sees opportunity:

• Many of its clients are now exiting ultra-low pandemic rates.
• A strong retention offer can prevent refinancing or switching.
• The bank can use AI-powered risk tools to offer customized retention offers without over-discounting.

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Broker Relationships: A Quiet Power Move

BMO is also quietly expanding its broker outreach — a space traditionally dominated by Scotiabank and TD. The bank recently:

• Added new incentive tiers for high-performing brokers
• Streamlined its broker submission portal
• Introduced a pilot program offering rate-match tools for competitive retention deals

This is a strategic hedge: by investing in both direct and third-party channels, BMO positions itself to catch business whether borrowers go solo or use a broker.

“Smart lenders are the ones who show up wherever the client shops,” notes one industry consultant.

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What This Means for Borrowers

If your mortgage is up for renewal in the next 6–12 months, expect more attention from lenders like BMO. This could mean:

• Better negotiation leverage
• A chance to rate-match without switching
• Tighter approval rules if your finances have changed

Mortgage.Expert Verdict

This isn’t the year to let your mortgage renewal auto-pilot.
With lenders like BMO sharpening their playbooks, borrowers who negotiate or bring in a broker could walk away with thousands in savings — without even switching banks.

“One example of this shift in strategy is BMO’s recent decision to raise the stress test buffer for new variable-rate applicants, reflecting a more cautious lending posture.”