Two items of interest.
1) This past Tues. The Bank of Canada quarenteed to keep its trend-setting rate at 0.25% until the end of June. The implication was there to expect rates to rise after that. If you have a mortgage that is coming up for renewal or are looking to purchase soon, now is the time to give us a call to see how we can help.
2) Street Capital has rolled out the first nationally available 1-year adjustable rate mortgage.
Paul Grewal, President of Street Capital, says the product is well-suited to those who expect that “discounts on ARM’s will increase.” It gives people “the flexibility to choose a shorter ARM term,” he adds.
Therefore, if you think variable rates will be prime – 0.50% next year, for example, this 1-year variable lets you switch mortgages in 12 months without penalty--instead of waiting 3-5 years.
Street Capital also lets customers convert to a 3-, 4- or 5-year fixed rate at any time, with no fee, and at discounted broker rates.
Here are some of the key guidelines:
LTV: Up to 95% on purchases and 90% on refinances
Rate Hold: 60 days
Amortizations: 16-35 years
Loan Amounts: $50,000 to $1,500,000
Qualifying Rate: 3-year discounted rate or contract rate
Minimum Beacon Score: 600
Early Termination Penalty: 3 months of interest
Lump-sum Pre-payments: 20% annually
Payment Increase Option: 20% annually
Rate premiums apply on conventional mortgages between 75%-80% LTV, rentals, stated income deals, and discharged bankrupts.
In conjunction with today’s announcement, Street Capital also announced a new 3-year variable.
Doug Boswell (MO 9002332) is a mortgage planner with Mortgage Architects Belleville Ont. (# 10287)
Doug deals with first and second mortgages, renewals, refinancing, bank turndowns.
Telephone: Cell 613-242-9830
Office 613-968-6439 ex24
For more information on mortgages and latest rates visit http://www.dougboswell.com/.