Oriana Financial Group of Canada Ltd.

Interest-Only Makes A Comeback

Canadian Mortgage Trends ~ June 22nd, 2018

Innovative mortgage products. Remember those?

With Ottawa’s onslaught of rule tightening, it’s been a while since we’ve seen a new product that was substantially unique. This is one of them.

Merix Financial, the broker channel’s seventh-largest lender by market share, is launching the Interest-Only Flex mortgage on Monday.

The IO Flex has one key purpose: to cut a borrower’s monthly carrying costs.

While the rates are higher than a conventional amortizing mortgage (as you’d expect given the higher risk), the payments are materially lower.

Take a $300,000 30-year-amortized mortgage, for example. A traditional adjustable-rate mortgage at prime – 0.75% has a payment of $1,214.

Click here to read the full article.

CURRENT RATES

CURRENT RATES
Term Our Rate Bank Rate
2 YEAR 1.99%* 3.74%
3 YEAR 2.79%* 3.89%
4 YEAR 3.14% 3.94%
5 YEAR 2.64%* 5.59%
5 YEAR variable 2.90%* %
03 Aug 2019


*Special conditions apply. Interest rates are provided for information purposes only and are subject to change without notice.

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