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%).
Like news like this?
Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime.
Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.