Most variable-rate mortgages are still at prime + 0.60% to prime + 0.80%. That rate premium is part of the reason people aren’t as jazzed up about variables anymore. Many think prime is going up in the next year as well.
If you’re one of these people, and don’t want to commit to locking in a 5-year variable at those high premiums, Merix offers a solution: a 21-month fixed-rate promotion at 2.90%!
This secures you a great variable-equivalent rate for 1.75 years. At that point, you can then hopefully move into a variable at prime (or even prime minus if the mortgage gods allow). It’s also convertible any time into a 5-year fixed at discounted broker rates.
This product is not perfect for everyone, but it’s a solid choice for variable-lovers in the crowd.
The fine print:
Only available for high ratio CMHC-insured financing (i.e., those with less than 20% down payments)
No pre-approvals or switches
Must close by May 29, 2009 (That means applications should be submitted by next week to allow 10 days after approval to close.)
Other conditions apply. Speak with any mortgage planner for complete information.