You’ve probably seen the signs or gotten those confusing letters in the mail. If you were looking for a Bank of the West HELOC, or if you already had one, the landscape shifted beneath your feet faster than a California earthquake. Here’s the deal: Bank of the West doesn’t really exist as a standalone entity anymore.
BMO (Bank of Montreal) officially wrapped up its acquisition of Bank of the West in 2023, and the technical "migration" of accounts happened over Labor Day weekend that same year. Basically, if you walk into an old branch today, you’re walking into a BMO.
But why does this matter for your home equity? Because when two giant banks merge, the fine print on things like your home equity line of credit (HELOC) gets messy. People are finding out that the "old way" of doing things with their home's value has been replaced by BMO’s specific rulebook.
Honestly, it’s a lot to keep track of.
The Reality of the BMO Transition
When BMO swallowed Bank of the West, they inherited a massive portfolio of home equity lines. If you already had a Bank of the West HELOC, your account number likely stayed the same, but the portal you use to pay it and the people you call for help changed.
The biggest shock for most people wasn't just the logo on the checks. It was the shift in digital experience. Some former Bank of the West customers have complained on forums like WalletHub about "glitches" where principal payments weren't being applied correctly or where autopay systems failed during the transition.
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It’s a headache.
If you are a legacy customer, you are now playing by BMO’s "Home Equity Line of Credit" rules. This means a 10-year draw period followed by a 20-year repayment term. You still have the variable rate tied to the Prime Rate, but the specific "discounts" you might have had at Bank of the West—like those tied to a Premier Checking account—might have been mapped over to BMO’s equivalent tiers.
What a Bank of the West HELOC Looks Like in 2026
If you’re a new customer looking for the "old" Bank of the West product, you won’t find it. You are applying for a BMO HELOC now.
What’s the vibe with BMO?
They are actually pretty aggressive with their introductory offers right now. As of early 2026, they’ve been dangling low introductory APRs—sometimes as low as 5.74% to 6.99% for the first 6 to 12 months. After that? It jumps to the standard variable rate, which currently hovers around 7.80% to 8.50% for well-qualified borrowers.
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Here is the breakdown of what they’re asking for today:
- Credit Score: You usually need a 650 to 680 at minimum. If you want the best rates, you’re looking at 740+.
- Equity: They generally want you to keep at least 20% equity in the home. That means your Combined Loan-to-Value (CLTV) ratio can't exceed 80%.
- Fees: There is a $75 annual fee. BMO often waives this for their "Gold" or "Premier" banking tiers, but for the average person, it’s a yearly tax on your credit line.
One thing BMO does that’s actually kinda cool is their Fixed-Rate Lock Option. During your draw period, you can take a chunk of your balance—say, $20,000 you used for a kitchen remodel—and lock it into a fixed interest rate. This protects you if the Fed starts hiking rates again.
But watch out: they charge a $75 fee every time you exercise that lock option.
The "Gotchas" Nobody Mentions
The merger didn’t just change the name on the door; it changed the "risk appetite."
I’ve talked to folks who had their credit lines frozen or reduced during the transition. Banks do this when they perceive a drop in home value or a change in your credit profile. Because BMO is a massive, multi-national machine, their automated systems are often less "forgiving" than the regional feel Bank of the West used to have.
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Also, closing costs are a sneaky beast. BMO says they pay "many" of your closing costs. "Many" is a loaded word. If you close that Bank of the West HELOC (now BMO) within the first 36 months, they will likely charge you a "closing cost recoupment fee."
They essentially claw back the money they spent to open the line for you. This can be several hundred, or even a couple thousand, dollars.
How to Handle Your Equity Now
If you’re sitting on a legacy account or looking to open a new one, don't just "set it and forget it."
Check your statements.
Verify that your interest-only payments are actually covering the interest and that any extra you throw at the balance is hitting the principal. Since the Fed made those three rate cuts back in 2025, your variable rate should have drifted down slightly, but you’ve gotta make sure BMO’s system updated your specific account.
Actionable Steps for HELOC Holders:
- Check Your "Lien" Position: If you’re trying to refinance or sell, ensure the title reflects "BMO Bank N.A." as the successor to "Bank of the West." Mistakes here can stall a house sale for weeks.
- Evaluate the Fixed Lock: If you have a large balance and think rates might go back up later in 2026, pay the $75 fee to lock in a fixed rate now.
- Confirm Your Discounts: If you have a BMO checking account, make sure you’re getting the 0.25% or 0.50% Auto Pay discount. Sometimes these fall off during system updates.
- Watch the 3-Year Mark: If you're thinking of switching banks, wait until you've had the line for 36 months to avoid that recoupment fee.
The Bank of the West HELOC you once knew is gone, but the equity in your home is still there. Navigating the BMO machine takes a bit more effort, but if you stay on top of the paperwork, you can still make your home's value work for you.