FirstLine
is reportedly suspending its variable-rate mortgages at the end of today. “Economic conditions” are being blamed.
This news will affect FirstLine’s Basic ARM, Open ARM, and Matrix mortgages.
It will come as a major disappointment to mortgage planners. FirstLine is one of the biggest broker-channel lenders in the country. Some individual mortgage brokers do over half their volume with FirstLine.
These discontinuations are not expected to be permanent at this point. On the other hand, there is no word on when the above offerings may return.
Hopefully it’s a short-term move and these products reappear once lending spreads (margins) fall back into line. Sometimes that can take a while though. MCAP discontinued their excellent FlexStar product eight months ago and it’s still not back.
FirstLine is owned by CIBC.
How this going to affect the Smith Manouver? I understood that program relied heavily on the Matrix Mortgage.
How is this going to affect current First Line variable rate mortgage holders?
Is first line going to comply with the CIBC’s decrease in the prime lending rate by .25%?
When Should I see this reflected in my mortgage payment?