The road reps won't like it. Heck, many brokers may not like it, either! But Mortgage Alliance has now handed its members a 20/20 five-year mortgage at 2.98 per cent; specifically tied to its very successful RightMortgage.
“This announcement is part of our long-term strategy, as was our recent GIC referral program, to provide our brokers with the competitive edge and resources," said MAC President Michael Beckette. "They can continue to build their business in every economy.”
The broker network officially launched the new RightMortgage rate on its five-year fixed Tuesday. Members of the network are already gearing up to sell it, even as the industry grapples with a slowing real estate market.
National sales in September were 15 per cent off of a year ago, according to CREA.
The slowdown compelled BMO to quietly reintroduce its own rock-bottom pricing, but on its "no-friller five-year mortgage and just for a few days .
Neither offer is likely to set off another round of the rate wars, said one analyst, pointing to continuing broker access to similar rates. Still MAC is hoping the 2.98 per cent rate will galvanize consumer interest.
It -- coupled with flatlining prices in many housing markets -- may also give MAC agents and brokers the opportunity to coax fencesitting clients into the market. Brokers across the country continue to see preapprovals mount as homebuyers wait on more significant price corrections.
The RightMortgage, now five years on the market, has attracted more than $5 billion in sales to date and enables borrowers to customize mortgages by tabbing features onto a bare-bones structure.