A good time to consider a deeply discounted variable rate term





Mar 18, 2020



With the recent significant drop in Prime Rate and the anticipation of more rate cuts to follow by Bank of Canada (BoC), this could be a good time to consider a deeply discounted variable rate term which will likely be off the market in the next few days. For now, we still have a lender offer at 0.9% off the Prime Rate for insured mortgages or mortgage amount up to 65% of the purchase price. The current Prime Rate is 2.95%, so the actual mortgage rate with the discount will be between 2.05%. If there is another rate cut of 0.5% which is predicated by most economists, the mortgage rate can go as low as 1.55% based on the 0.9% discount.





This offer also comes with some great features such as:

- Annual payment increase up to 20% of the originally scheduled payment amount

- Annual prepayment option up to 20% of original mortgage balance each year

- Flexible payment frequency including monthly, semi-monthly, regular and accelerated bi-weekly and weekly

- Portable and assumable upon qualification

- Ability to lock the term into a fixed rate as long as the new term is equal to or longer than the remaining term

- 3 month interest penalty to cancel the term upon a Bona Fide Arm’s Length Sale.


The conditions of this offer are:

- Primary or secondary home only

- Purchase price is less than $1 million, or current subject home value is less than $1 million if it was bought after Oct 2016

- Maximum amortization is 25 years

- The term can not be cancelled before the maturity date unless the property is sold to an arm’s length purchaser at fair market value.


Interested? Please feel free to contact us for more details!