Is this the lowest posted mortgage rate ever? 1.49 per cent!

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There are low mortgage rates and then there’s this one. A credit union has shaken up the spring buying season by offering a rate of just 1.49 per cent and is marketing it as “the lowest known posted mortgage rate in Canadian history”. The Toronto based Meridian’s fixed rate is however only a short loan, just 18 months, and is only available to those in Ontario through the credit union’s 67 branches, not online. Rob McLister, founder of ratespy.com, told the Financial Post that it will save buyers $1,609 of interest for every $100,000 borrowed.

The concern is that at the end of the eighteen months of super-low repayments buyers may emerge into a very different climate; interest rates could have increased by then leaving them with a hefty hike. Meridian’s Bill Whyte says that the loans will be offered only to those passing a strong stress test and they work with borrowers to ensure they understand all the implications. 
 
  • Jake Abramowicz on 2015-04-10 9:09:13 AM

    This is a perfect opportunity to approach your clients who have 18 months left on their mortgage and are in a higher rate (well, anything will be a higher rate) when meridian releases this via the broker community (which I expect it to).

  • Ron Butler on 2015-04-10 11:31:19 AM

    We will see whether they release to brokers or not. Bottom line: kudos to Meridian, they likely picked up $200K worth of free publicity. Smart move and once again it proves that no matter what anyone thinks or says; rate leads consumer thinking on mortgages.

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