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.