Effective today, ResMor Trust has “suspended” all of its variable-rate mortgage offerings.
They’ve also cut their rate hold period to 90 days, from 120 days.
ResMor will honour all of it’s issued mortgage commitments however.
ResMor’s announcement is in response to “continued uncertainty in the credit markets.” In other words, it’s getting tougher to find sources of funds for variable-rate mortgages–at reasonable costs.
This news is a major surprise to most broker’s we’ve talked to. In this sense, the company has seemingly downshifted a few gears from the story we wrote on February 29.
ResMor is by no means the only lender feeling the pinch in variable-rate market, however. We know of other lenders as well who are finding it much tougher to compete in the variable space.
If you’re shopping for a variable rate mortage, now is a good time to lock in your rate discount.
Facts on ResMor:
ResMor is a federally licensed trust company operating across Canada. They’re focused on residential mortgage lending, mortgage servicing and deposit products. As of November 5, 2007 ResMor had $4 billion of mortgages under administration representing almost 24,000 homeowners. 100% of ResMor’s mortgage business comes from brokers. The company is owned by GMAC Residential Funding of Canada Limited, a subsidiary of Residential Capital, LLC (GMAC ResCap).
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