Read the fine print. Not every mortgage “deal” is a deal, especially when it comes to teaser rates–so says Vince Gaetano of Monster Mortgage.
In this Maclean’s story, Gaetano uses CIBC’s “Better than prime” mortgage as an example. He says the “Better than prime” mortgage offers a teaser rate of 1.01% below prime for the first nine months. The discount declines to 0.25% below prime for the remainder of the 5-year term.
Overall the rate ends up being 5.88% over 5 years, says Gaetano. That’s a total discount of only 0.37%. (As of this writing, other lenders are discounting up to 0.90%).
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