Move over BMO’s 2.99 “No Friller” mortgage: A new product – from an unlikely source – is the one making waves in the mortgage industry Tuesday.
Investors Group – not one to often make mortgage news
headlines – posted a 36 month closed variable-rate mortgage rate at 1.99 per cent (Prime – 1.01 per cent).
Its other offerings, including a 3.35 per cent five-year fixed rate, are among industry standards but its three-year 1.99 per cent will certainly raise a few eyebrows among customers and, indeed, mortgage brokers.
At least one isn’t sold on the product just yet.
“Investors Group’s whole deal is to get all your products so there’s got to be a catch to it. Nothing is for free and they hardball their clients to transfer all their accounts over to them,” John Panagakos of Dominion Lending Centres
Home Financial told MortgageBrokerNews.ca. “Nothing is for free. They’re going to want three, four products per client.”
And the offer does come with a few stipulations.
“If applicable, you may be responsible for legal and administrative fees or prepayment charges. Not available for renewals or internal refinances,” the fine print for the product reads. “These promotions are closed terms that are not eligible to be paid out, refinanced, early renewed or extended prior to maturity of the term (except upon the bonafide sale of the subject property).”
The “mortgage wars” have been heating up over the past year, with a number of big banks, several mortgage brokers and at least one credit union offering sub-three per cent five-year fixed rate mortgages.
Most recently, RBC started advertising its “employee pricing” mortgage.
RBC offers ‘employee pricing’ mortgages
The 2.99 per cent five-year fixed is back