“No-frills” mortgages have become a tempting option for home buyers with limited pre-payment ability. The newest entrant in this segment is Street Capital’s “Street Sense Closed Adjustable Rate Mortgage” (ARM).
The Street Sense Closed ARM is a highly-discounted, fully-closed variable with minimal pre-payments. The benefit it offers, in exchange for less flexibility, is a lower rate. The Closed ARM’s rate is intended to float about 5-10 basis points below most competitors (most good lenders currently stand at prime – 0.50% to –0.60%).
“The Closed ARM is a mortgage for a client who just wants a rate and really has no intention of refinancing their property,” said Street Capital President, Paul Grewal.
"This product is not meant for everyone. We wanted to test the market and expand our product offering to pick up additional volume."
About Street Capital:Street Capital Financial Corporation is a Canadian wholesale lending company. The company has approved lender status with Canada Mortgage and Housing Corporation (CMHC) and distributes through the mortgage broker origination channel.
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.