BMO adjusts mortgage rules for steel, aluminum business owners

The Bank of Montreal (BMO) has changed some mortgage rules for business owners in the steel and aluminum industries. This decision is a response to ongoing trade tensions and tariffs between Canada and the United States. BMO announced in a memo that it would reduce the total debt service ratio for these borrowers from 44% to 42%. This change allows borrowers to better manage their housing costs and take out smaller mortgages. The bank added that the steel and aluminum sector is now considered more at risk due to the impact of tariffs. Recently, Canada imposed a 25% tariff on certain U.S. goods, including steel and aluminum, in retaliation for U.S. tariffs on Canadian products. This situation has raised concerns for Canadian steel workers, prompting calls for government support. BMO clarified that these new measures are designed to help protect the long-term financial health of its customers. The bank pointed out that updating lending criteria is a normal procedure that reflects the current economic climate. In addition to steel and aluminum, industries such as utilities, construction, and transportation are also identified as areas where BMO has a lower risk tolerance. BMO is the first bank in Canada to implement such mortgage changes in light of the trade war. A Toronto mortgage broker noted that the change was minor and predicted that other banks would likely follow suit.