Under the Value-Flex products, MCAP is offering a 5 year fixed rate of 2.89% and a 5 year variable rate at prime minus .65% equal to 2.35% today!
We have seen BMO and other lenders offer these types of low rate products in the past with even more restrictive options. MCAP has been able to keep the majority of the great features their mortgages offer with this product line including:
• Prepayment privileges of up to 20% per year
• Port, refinance and equity take out options with increase, blend and extend privileges (With MCAP only)
• Early renewal option (With MCAP only)
• Early payout with standard payout penalty if property is sold to a 3rd party purchaser
• Flexible payment options monthly / semi-monthly / bi-weekly / weekly (accelerated)
• 90 day rate hold period
The main differences between the Value-Flex product and MCAP’s standard product line is the restriction to refinance without a sale of the property. They will allow you to refinance with MCAP but not another lender. The mortgage itself would stay intact with MCAP and a refinance would be done with an increase, blend, and extend option. Early payout is not an option unless the property is sold. There are also no pre-approvals and the rate hold period is 90 days instead of the standard 120.
The MCAP Value-Flex is ideal for borrowers who simply want the best mortgage rate available but still have access to great mortgage privileges including early renewals, ports and refinances with blended rates or the ability to payout early if they sell their property to a 3rd party purchaser. The only concern would be no option to refinance with a different lender during the 5 year term and no option of an early payout. For most people this is not usually a concern.
For more information please contact one of our local mortgage broker professionals in your area.