Radius Financial formally introduced its RateWise Mortgage Monday, pointing to both its 2.94 per cent on a five-year term and its more restrictive prepayment allowances.
"This mortgage product is specifically designed for homebuyers who want greater savings while keeping some flexibility in their mortgage," says Suzanna Stefanec, VP of national sales for Radius. "Radius recognizes a large segment of the population that does not take advantage of mortgage privileges. This product rewards these consumers with a lower rate while ensuring their mortgage still has certain privileges."
The Pacific Mortgage Group lender points to a recent CAAMP survey to back up the assertion. It suggests 81 per cent of borrowers do not take advantage of their lump sum privileges and 77 per cent don't utilize increased payment privileges.
The RateWise product offers 10/10 prepayment privileges. although five-year terms at 2.94% are portable mortgages. The product comes as something of a boon for brokers as well.
"The Radius Financial RateWise mortgage gives brokers a competitive advantage when servicing clients," says Stefanec. "This product offers brokers the ability to service different markets and compete on rate while still rewarding customers with mortgage privileges, this is a true value add to the Radius product line up."
Radius is actively trying to grow and expand its product offerings and mortgage features as a way of growing its book and its reach outside of the Mortgage Architect group. Stefanec bills the low-rate mortgage as that "next step in providing valuable tools to our broker partners."