Offer available on insured purchases…
Why This Deal Matters
We’ve literally never had a 3-year fixed rate this low. You’ll save more than one-half percentage point per year for three years, compared to the average 5-year fixed mortgage. That’s over $4,300 of initial interest savings on a $300,000 mortgage.
In fact, rates would have to increase almost two full percentage points in 36 months for you to save more in a standard 2.69% five-year fixed. With inflation being well managed by the Bank of Canada, and economic growth so tenuous, a two-percentage-point rate hike might be a stretch in the next few years.
Long story short, with economists and the Bank of Canada projecting lower rates for longer, many believe the risk of significantly higher rates at renewal is notably less than in the past. These factors, in our view, make three-year terms attractive from a risk-reward perspective.
Who’s Right For This Rate
A 3-year fixed rate is best suited to a financially secure borrower who wants more up-front interest savings than a 5-year fixed, but doesn’t want the rate risk and/or payment fluctuations of a variable.
It’s also a good fit if there’s a chance you’ll make changes to your mortgage in three to five years (e.g., need to upgrade your home, sell your property, refinance, add a secured line of credit, etc.).
This lender requires that you have a CMHC or Genworth insured mortgage closing within 120 days. It makes this rate available on purchases only. Sorry, no refinances or switches! The mortgage must be between $100,000 and $949,999 and the amortization between 20 and 25 years.
Quick Tip: Make sure you can handle the potential of 2%+ higher rates at renewal. It may not happen but you should always be prepared. You can use this tool to check your hypothetical renewal payment → Mortgage Stress Test Calculator
This mortgage has 20% lump-sum prepayments privileges, an optional 20% annual payment increase and is portable to a new property (subject to qualification). A discounted penalty applies in the event you ever need to break the mortgage early and the registration is traditional (non-collateral charge) for easier lender switches at maturity.
This offer comes with two bonuses:
- The appraisal is free.
- All clients receive a free home warranty covering repairs up to $10,000 with a $50 deductible. Inquire for details.
The “Fine Print”
This offer is subject to change by the lender without notice, or February 29, 2016, whichever comes first. This rate requires you to submit your complete documentation within one week of approval, and at least 10 days prior to your closing date.
Please note that rate projections are subject to error and the hypothetical rate scenarios above are not guaranteed. Rates may differ significantly from the scenarios contemplated here.
Like most closed mortgages, a penalty applies if you terminate the mortgage before the end of the term. Mortgage increases are permitted after closing, subject to re-qualification, with a discounted prepayment charge built into the new rate. APR equals the rate shown on a sample $500,000 mortgage transfer. Other conditions may apply. E&OE. O.A.C. Contact us anytime for clarifications at email@example.com, or 1-800-280-2460.
How this deal stacks up
Today’s Top Deal should be the best value in the market. But don’t take our word for it. Compare this mortgage using Canada’s top rate shopping tool, RateSpy.com.