This year CMT is starting a New Years tradition with the announcement of its 1st annual award for Mortgage of the Year.

CMT’s Mortgage of the Year will acknowledge the lender who created the most innovative mortgage in the prior year.

For 2007, the award goes to MCAP for their FlexStar product.

FlexStar’s readvanceable feature, built-in discounted line of credit, and interest-only option make it one of the most flexible mortgages around.  (Here is our full October 29, 2007 review.)

FlexStar is proof that mortgage innovation is alive and well in Canada.  It’s also a precursor to the out-of-the-box products we may see more of in 2008.