Variable Rate offer at 1.99%
May 14, 2014 | Posted by: Patrick Mulhern
Variable Rate at 1.99%
I am sure you have all heard that Investors Group is offering a mortgage to their clients at
prime-1.01% (currently 1.99%).
Here are the terms of the offer:
* 3 year variable rate term
- * Cannot be assumed
- * Not portable to another property
- * Cannot refinance during the term
- * Cannot convert to a fixed rate if rates start to increase
- * Can only get out of the mortgage on a bona fide arm’s length sale
This is an amazing rate but for a very limited type of client. The main issue here is what options are available if rates start to increase in 1 year. Client cannot convert to a fixed rate. Client cannot even pay it out with a penalty to go to another lender. Very restrictive however, like the restrictive offer BMO introduced last year (5 year fixed at 2.99%) we will have to see what the competition comes up with.
Will let you know.
Enjoy the sunshine,