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Mortgage Broker News | 03 Feb 2016, 08:15 AM Agree 0
It’s that time of year again, with one niche lender offering bargain basement mortgage rates – but just how many clients are suited to this unique offer?
  • John Van Driel | 03 Feb 2016, 09:53 AM Agree 0
    Does this spell the end of their broker channel offerings? Are they going the way of 3 of the big banks? If not, you would think this would be offered through brokers at a discounted finders fee!!
  • Julie Stamp | 03 Feb 2016, 10:06 AM Agree 0
    In my opinion, modt Canadian consumers will not find a one year fixed rate beneficial even at a lower rate, this puts them at risk of potentially even higher rates next year when this mortgage term expires, you have to seriously weigh your realistic options before taking a short term mortgage of only 1 year, short term gain vs. Potential long term loss. Also to qualify for any Mortgage other than a 5 year fixed in Canada, you must qualify the client on the Bank Of Canada's posted rate , currently at 4.64%, not as noted above on 5 year rate. Not all buyers will qualify on this higher rate, dependent on their circumstances. To obtain a Meridian mortgage the customer must be within 30 minutes of a branch location, Meridian has a limited number of branches in larger urban centres so any clients falling outside of this location requirement will not qualify for a mortgage with them. This seems more like a teaser rate to hook the client into their system, similar to so many low interest rate advertising found on the Internet. In conclusion I believe this is a product that is only suitable to a very small niche market and likely not in the best interest of Canadians long term goals when it comes to their Mortgage goals.
  • mortgage nerd | 03 Feb 2016, 12:52 PM Agree 0
    I agree with Julie Stamp. In my oppinion this would be no different than a teaser rate on 5 year fixed. Actually, it's worse because its harder to qualify for and you have no idea what the rate is at the end of the first year.
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