The 5 year term "No Frills Mortgage" A Unique Mortgage for the Unique Client |
Ask yourself. "did I take advantage of my prepayment privileges anytime over the past 5 years?" and / or "could I not structure a more flexible Line of Credit component to accomodate any prepayments in the future?" |
The Ontario Mortgage Team in co-operation with one of Canada's Premier Lending Institutions is pleased to announce the 5 year "No Frills Mortgage". This unique mortgage product is designed for clients who fit the following profile:
First time homebuyers who want fixed payments and have limited opportunities to make lump sum prepayments during the first 5 years of their mortgage.
Property investors who need a low fixed rate and are not concerned with making lump sum prepayments.
Borrowers looking for a low, fixed interest rate inside their HELOC.
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| What is a No Frills Mortgage? |
Simply put: We can offer the lowest rate possible by stripping away prepayment privileges that most borrowers do not take advantage of, and by reducing the rate hold period. Why? According to CMHC’s 2007 Mortgage Consumer Survey, 75% of respondents intended to pay off their mortgage sooner, however only 33% of respondents had made a lump sum prepayment against their mortgage. Most Canadians who take action to pay off their mortgage sooner do so by accelerating their payments. Source - CMHC 2007 Mortgage Consumer Survey: Click Here for your copy. |
| The 5 Year, No Frills Mortgage Includes: |
Prepayment Privileges: 0% lump sum prepayment but a 10% increase in the regular payment amount per anniversary year. Also, borrowers can take advantage of accelerated weekly and bi-weekly payment options which can help them reduce their interest costs.
Maximum Rate Hold: 30 days. Preapprovals are not permitted on this product
Xtended Amortizations: Yes, up to 35 year amortizations are available.
Maximum Loan-to-Value: 95%
Is the No Frills Mortgage Portable or can the amount be increased without penalty? You can port the interest rate, insurance premium (per insurer policy), and remaining term to a new "No Frills Mortgage" with no prepayment penalty.
What are the prepayment penalties if the mortgage is paid out in full during the term: You may prepay the mortgage in full only upon payment of the greater of 3 month’s interest or the interest rate differential (IRD) calculated by us on the outstanding loan amount using current published rates PLUS an administration fee of 0.025% will be applied to the original mortgage amount multiplied by the number of months remaining on the initial term at the time of payout.
No penalty or admin fee is charged if the customer Ports or Blends and stays with the same Lender at the time of purchase and sale. |
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For information on this and other Financing Packages available, customized to meet your needs and expectations rather then the Lenders, contact the Ontario Mortgage Team Professional nearest you. Click Here to Meet the Team. |