5.19% — WOW!
First Foundation is proud to offer, in conjunction with one of our lending partners, Merix Financial, a No-Frills Mortgage that provides a significantly lower interest rate than a typical 5 year mortgage.
The Merix No-Frills mortgage is a 5-year closed term, fixed rate mortgage that is able to provide a lower interest rate by offering fewer prepayment privileges than are normally offered on a fixed rate mortgage. One prepayment privilege that remains is the option to increase mortgage payments by up to 10% of the original registered amount each year. Like most fixed rate mortgages, the No-Frills mortgage is fully portable, and you are able to choose weekly or bi-weekly payments to accelerate how fast the mortgage is paid off.
Provided you qualify, you can obtain a considerably lower interest rate with the No-Frills mortgage than with other 5-year fixed rate mortgages.
One interesting note is that a recent study indicated that 75% of respondents intended to pay off their mortgage sooner, however only 33% of respondents had made a lump sum prepayment against their mortgage. Most Canadians who take action to pay off their mortgage sooner do so by accelerating their payments. —Source – CMHC 2007 Mortgage Consumer Survey
That’s what makes the no-frills mortgage so attractive for many people.
The current rate (as of May 7th, 2008) for the Merix No-Frills 5-year fixed rate mortgage is 5.19%, whereas other current 5-year fixed rate mortgages have a rate of 5.39% to 5.59%, depending on the lender.
If you are interested in the No-Frills mortgage, please contact us today for more details.