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The Value Mortgage

Money Saving
Money Saving
Author - Lisa Alentejano
Author - Lisa Alentejano


MCAP recently launched a product called “The Value Mortgage”.   Along with this mortgage comes a  rate of 3.59% which is about a 1/4% lower than most 5 year fixed rates out there today.

Great rate yes BUT along with this rate there are some things MCAP had to remove to give you such a great rate.  Keep in mind when considering these types of  “bare bones” or “no frills” type of mortgages that they offer a great rate but at a price.  Here is a list of their criteria;

  • there are no lump sum payment options available to you, but you can still access accelerated payments and they allow you to increase your mortgage payments up to 10% per year.
  • it is a fully closed mortgage for the full 5 years,  no refinancing option, only way to break the mortgage is if you have a firm sale of your property in which the product then become portable.
  • With a port and increase, instead of a blended rate which is normally the case with ,  MCAP allows their second line of credit at best rates.

Here are some of the lending criteria that we have to consider when placing clients in this type of mortgage;

  • No preapprovals available
  • For purchases and refinances only (no transfers from other FI available)
  • Term is for 5 years
  • Rate hold for 30 days
  • Owner occupied properties only, no rentals or secondary homes allowed
  • Maximum LTV is 95%
  • Maximum GDS– 32% TDS – 42%
  • Qualifying rate used is 3.59%
  • Income qualified only (no stated income available)
  • Penalty consists of the greater of 3 months interest or IRD (interest rate differential)

This type of mortgage is becoming more and more popular if your just looking to lock into a great rate.  It can be worth while in certain circumstances and certainly doesnt hurt to take a look at. 

MCAP is Canada’s largest independent mortgage and equipment financing company, with more than $30 billion in assets under administration. Operating in four key lines of business: residential mortgages, commercial mortgages, construction loans, and equipment financing, the company generates combined annual new asset production of over $10 billion.

MCAP Mortgage Corporation is only accessed through approved mortgage consultants.



Finance/mortgage industry professional located in the Interior BC First Time Buyer Challenged Credit Second Mortgages Line of Credit Refinance Renewal Lets talk about your financing needs today! Great rates and Great Service!

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