The product offers some of the lowest variable rates in the market
True North Mortgage Inc. has announced the launch of its no-commitment mortgage, which it touts as a “revolutionary” product offering variable rates as low as 1.25% (P- 1.20%).
The brokerage said that this will be Canada’s first open mortgage with a very competitive rate, allowing borrowers to “break or convert their mortgage at any time with no penalties, yet save money with a much lower rate than is typically offered with other open mortgages.”
“We are very excited to bring this product to market. Buying a house is stressful enough without the pressure of choosing the right mortgage product,” said Dan Eisner, founder and CEO of True North Mortgage. “With our no-commitment mortgage, clients can lock in their rate at any time, or have the option to pay off their mortgage partially or completely without penalties. They get the simplicity they need, with absolute freedom – and best yet, a great rate.”
Read more: True North’s five-year fixed rate offering shoots up
The product comes with no penalties or restrictions, and both high-ratio and conventional mortgages are eligible. However, it will be only offered with a variable rate for a five-year term, and borrowers need to pass the federal mortgage stress test to qualify for the product.
The no-commitment mortgage was made available starting Jan. 17, and is offered on purchases, refinances, and switch transactions. True North is offering the product through its in-house lender THINK Financial for a limited time only.
