Product is for those looking to buy a home or who want to switch lender at renewal for better rates
Mortgage brokerage True North Mortgage has expanded its rate relief product lineup through the addition of a one-year low fixed rate mortgage. The addition came through THINK Financial, the broker’s CMHC-approved in-house lender.
Initially, the rate relief product lineup was launched with a low six-month fixed rate. With its success, the opportunity of having a full year of low payments has caught attention due to the stress on Canadian households caused by higher rates, the company said.
“Our new clients appreciate the six-month product as a short-term budget break to handle other expenses, like closing and new-home costs, while the market volatility tries to sort itself out,” said Dan Eisner, founder and CEO of True North Mortgage.
“Adding this one-year product extends that budget relief, placing clients in an even better position of renewing into lower market rates when the year’s up, assuming rates will drop at some point in 2024,” he added.
The new one-year rate relief mortgage is targeted at those who will be buying a home or those who want to switch lenders at renewal in order to get a better rate. There will be other conditions like those for insured or insurable mortgages, amortizations of 25 years or less, and homes that are below the price of $1 million, unless the original mortgage default insurance was still valid.
Clients who will decide on having a rate relief mortgage may have a small premium that will be added to their best market rate upon renewal. According to Eisner, this will help offset the discount that was offered with the product.
“We get inquiries wondering what the catch is with these low short-term rates, whether there's a bona-fide sale clause. There isn't. Rate Relief mortgages come with the same full-featured option panel as our standard THINK Financial mortgages. And there are no hidden fees,” said Eisner.
“We're transparent that there is a non-renewal fee, but having said that, a client is welcome to leave at the end of the year or renew with any one of our great, standard mortgage products, including a variable rate,” he added.
