On October 1, 2007, MCAP introduced a new mortgage product called FlexStar. FlexStar is a re-advanceable mortgage whose rate is variable and floats according to the prime lending rate. With FlexStar, you can make minimum payments of interest-only for 10 or 25 years, and you can repay up to 50% of the principal amount in the first five years. After five years, the FlexStar product is completely open (meaning that you can pay off as much as you want, when you want).
FlexStar allows you to re-draw funds from your mortgage that you have already paid off, up to the original loan value, with no need to refinance to get those extra funds. Re-drawing with FlexStar is also very convenient and simple; you can do it over the phone, by email, or by using a debit card. A FlexStar mortgage can be up to 90% of the property’s value, or up to 80% if the client is self-employed or the property will be a rental property (small rental properties only).
MCAP’s FlexStar provides detailed monthly statements, so you are aware of your mortgage balance. FlexStar can be used on purchases, refinances or equity take outs. Overall, it’s a great product for people who don’t want the hassle of refinancing their house if they need extra funds, and that like the freedom of an open mortgage (after the first five years).
For more information about MCAP and their products, please visit their website.