variable rate comparison

Variable Rate ComparisonVariable Rate Comparison

See for yourself, who has the See for yourself, who has the “BEST” Variable Rate “BEST” Variable Rate

Mortgage Mortgage

INTRODUCTIONINTRODUCTION

Every lender claims to have the best Every lender claims to have the best deal going.deal going.

This seminar is going to eliminate the This seminar is going to eliminate the mystery of which Variable Rate mystery of which Variable Rate Mortgage is the best.Mortgage is the best.


It has never been more confusing It has never been more confusing trying to decide which mortgage is trying to decide which mortgage is the best deal for you.the best deal for you.

In the past, there were only fixed In the past, there were only fixed rate mortgages, and you haggled rate mortgages, and you haggled with the lenders to get the best rate.with the lenders to get the best rate.


DEEP DISCOUNTS

CASH BACK

TEASER RATES

ARE YOU A LITTLE CONFUSED?

Let’s back things up a little, and Let’s back things up a little, and explain the basics about variable explain the basics about variable rate mortgagesrate mortgages

What is a VRM ?What is a VRM ?

A variable rate mortgage, more A variable rate mortgage, more commonly known as a VRM, is a commonly known as a VRM, is a mortgage financing product that is mortgage financing product that is based on the lenders “PRIME based on the lenders “PRIME LENDING RATE”.LENDING RATE”.

It fluctuates as the prime rate It fluctuates as the prime rate changes. changes.

What is a VRM ?What is a VRM ?There are many different There are many different components to a VRM.components to a VRM.

#1 THE TERM.#1 THE TERM.

This represents how long you are This represents how long you are committed to staying with the committed to staying with the lender. Most are between 3 and 6 lender. Most are between 3 and 6 years. years.


#2 THE RATE.#2 THE RATE.

This is where things get really This is where things get really interesting. Some lenders offer, a interesting. Some lenders offer, a significant discount below prime, significant discount below prime, others offer an initial teaser rate, others offer an initial teaser rate, then reduce the discount below then reduce the discount below prime, others offer cash back. prime, others offer cash back.


#3 CONVERTABILITY#3 CONVERTABILITY

This is what allows you to stop your This is what allows you to stop your mortgage rate from floating and lock mortgage rate from floating and lock into a fixed rate. However, there are into a fixed rate. However, there are significant differences with each significant differences with each lender with regards to this. lender with regards to this.


#3 CONVERTABILITY (cont)#3 CONVERTABILITY (cont)

All lenders say you can “Lock-in” to a fixed All lenders say you can “Lock-in” to a fixed rate mortgage without paying a penalty, rate mortgage without paying a penalty, however each lender has different policies however each lender has different policies which restrict to which terms, and at what which restrict to which terms, and at what rate. Be very careful with this part, many rate. Be very careful with this part, many lenders like to be vague with what the lenders like to be vague with what the conversion rate is, because your mortgage conversion rate is, because your mortgage is a closed mortgage, and to leave will cost is a closed mortgage, and to leave will cost you a penalty. you a penalty.


#4 Mortgage Penalties#4 Mortgage Penalties

This too is an area where many lenders This too is an area where many lenders differ. Because most variables are closed, differ. Because most variables are closed, there is a penalty to leave before the there is a penalty to leave before the maturity date. Most are 3 months, some 2 maturity date. Most are 3 months, some 2 months, and some become open after 3 months, and some become open after 3 years. years.


These can be excellent products in a These can be excellent products in a stable interest rate environment or stable interest rate environment or when interest rates are trending when interest rates are trending downward. downward.


The Variable Rate Mortgage (VRM) The Variable Rate Mortgage (VRM) has, over the last 2 years become has, over the last 2 years become extremely popular. extremely popular.

Over the last 2 years more than 80% Over the last 2 years more than 80% of my clients have been going into of my clients have been going into variable rate mortgages, and saving variable rate mortgages, and saving significant amounts of money. significant amounts of money.

Variable vs. Fixed RatesVariable vs. Fixed RatesThere is an enormous potential There is an enormous potential savings converting your mortgage to savings converting your mortgage to a variable rate mortgage. You could a variable rate mortgage. You could literally save $1000’s above and literally save $1000’s above and beyond any penalty to break your beyond any penalty to break your mortgage.mortgage.My own personal mortgage is in a My own personal mortgage is in a variable rate mortgage, and I am variable rate mortgage, and I am saving $1000’s. saving $1000’s.

Variable vs. Fixed RatesVariable vs. Fixed RatesFixed rate mortgages are tied to the Fixed rate mortgages are tied to the Canadian Bond Market and rates are Canadian Bond Market and rates are constantly changing. We have seen constantly changing. We have seen as many as 4 changes to the 5 year as many as 4 changes to the 5 year mortgage rate in one week alone. mortgage rate in one week alone. The variable rate mortgage only The variable rate mortgage only changes as the prime rate changes, changes as the prime rate changes, and there are actual scheduled dates and there are actual scheduled dates each year.each year.

Variable vs. Fixed RatesVariable vs. Fixed RatesNow let me show you how much money Now let me show you how much money you could save, comparing my best you could save, comparing my best variable rate mortgage to the best current variable rate mortgage to the best current 5 year mortgage.5 year mortgage.

Now keep in mind that these calculations Now keep in mind that these calculations are assuming prime does not change for are assuming prime does not change for the full 5 years. Not a likely scenario, the full 5 years. Not a likely scenario, however as of today, prime actually looks however as of today, prime actually looks like it could go down ¼% next week, which like it could go down ¼% next week, which would increase the savings. would increase the savings.

Variable vs. Fixed RatesVariable vs. Fixed RatesMortgage Amount $200,000, payments for both mortgages are Mortgage Amount $200,000, payments for both mortgages are $1200.00 per month.$1200.00 per month.

My Best 5 year Fixed Rate is currently 5.00%My Best 5 year Fixed Rate is currently 5.00%

My Best Variable Rate Mortgage is the BMO 6 Year flex below My Best Variable Rate Mortgage is the BMO 6 Year flex below prime mortgage with 1.00% cash back. To show maximum benefit prime mortgage with 1.00% cash back. To show maximum benefit of the cash back, we have applied the cash back as a lump sum of the cash back, we have applied the cash back as a lump sum payment to the principal of the mortgage. The initial rate for payment to the principal of the mortgage. The initial rate for BMO, is 2.25% for the first 3 months, it then floats at prime -.375 BMO, is 2.25% for the first 3 months, it then floats at prime -.375 for the remainder of the term. This mortgage becomes fully open for the remainder of the term. This mortgage becomes fully open after 3 years.after 3 years.

I think you will be truly surprised at the potential savings a I think you will be truly surprised at the potential savings a variable rate mortgage can offer. variable rate mortgage can offer.

5 Year Fixed vs Variable

5 Year 5 Year FixedFixed

Variable Variable RateRate

5 Year 5 Year Principal Principal BalanceBalance

Variable Variable Principal Principal BalanceBalance

Savings Savings with the with the VariableVariable

Mortgage AmountMortgage Amount $200,000$200,000 $200,000$200,000

Cash Back Cash Back $0.00$0.00 $2000$2000

Mtg. less Cash BackMtg. less Cash Back $200,000$200,000 $198,000$198,000

Initial Interest RateInitial Interest Rate 5.00%5.00% 2.25%2.25%

Balance After 3 MonthsBalance After 3 Months $198869.70$198869.70 $195,509.09$195,509.09 $3360.61$3360.61

Rate After 3 monthsRate After 3 months 5.00%5.00% 4.125%4.125%



Balance After 1 YearBalance After 1 Year $195393.85$195393.85 $190,691.81$190,691.81 $4702.04$4702.04

Balance After 2 YearsBalance After 2 Years $190,554.51$190,554.51 $184,032.89$184,032.89 $6521.62$6521.62

Balance After 3 YearsBalance After 3 Years $185,470.20$185,470.20 $177,094.03$177,094.03 $8376.17$8376.17

Balance After 4 YearsBalance After 4 Years $180128.49$180128.49 $169,863.48$169,863.48 $10265.01$10265.01

Balance After 5 YearsBalance After 5 Years $174516.35$174516.35 $162,328.97$162,328.97 $12187.38$12187.38

Variable vs. Fixed RatesVariable vs. Fixed RatesA staggering $12,187.38 in five years. A staggering $12,187.38 in five years. Now keep in mind, should prime go up during the Now keep in mind, should prime go up during the term, it would reduce the total savings, however term, it would reduce the total savings, however the longer prime stays down the more money you the longer prime stays down the more money you are saving. are saving. You can also lock in your variable rate mortgage You can also lock in your variable rate mortgage to a fixed rate term at anytime, but rates could to a fixed rate term at anytime, but rates could go up and then shortly after that go back down go up and then shortly after that go back down again, so locking in after a rate increase may not again, so locking in after a rate increase may not be the correct response. be the correct response. I have been in my variable rate mortgage for the I have been in my variable rate mortgage for the last 15 months. last 15 months.

Variable vs. Fixed RatesVariable vs. Fixed RatesNow you can clearly see the variable rate Now you can clearly see the variable rate mortgage is currently giving you the best mortgage is currently giving you the best potential savings with your mortgage.potential savings with your mortgage.

There are over 20 different variations of There are over 20 different variations of variable rate mortgages available today, variable rate mortgages available today, so how do you know who has the best deal so how do you know who has the best deal ??

I will show you what the other lenders I will show you what the other lenders don’t want you to know…..!!!!! don’t want you to know…..!!!!!


Enough with the definition, let’s look Enough with the definition, let’s look at each lenders product.at each lenders product.

These are listed in alphabetical These are listed in alphabetical order, not to indicate which is best at order, not to indicate which is best at this point. this point.

DisclaimerDisclaimerThe following information was obtained on The following information was obtained on January 7, 2004 but is subject to change.January 7, 2004 but is subject to change.

The Prime rate on Jan 7, 2004 was 4.50% The Prime rate on Jan 7, 2004 was 4.50% and assumes the prime rate does not and assumes the prime rate does not change as I cannot predict the future change as I cannot predict the future changes of prime.changes of prime.

All calculations were based on a $200,000 All calculations were based on a $200,000 mortgage, with a monthly payment of mortgage, with a monthly payment of $1200 per month.$1200 per month.

PRODUCT NAME: Flexible Below Prime MortgagePRODUCT NAME: Flexible Below Prime MortgageTERM: 6 Years, but fully open after 3 years.TERM: 6 Years, but fully open after 3 years.CASH BACK: 1.00% of mortgage amount, paid on closing.CASH BACK: 1.00% of mortgage amount, paid on closing.TEASER RATE: Prime – 2.25% for 3 months.TEASER RATE: Prime – 2.25% for 3 months.FLOAT RATE: Prime - .375%FLOAT RATE: Prime - .375%CONVERSION: To the 3CONVERSION: To the 3rdrd anniversary or longer. anniversary or longer.PRE PAYMENT PRIVILAGE : 20/20 (Lump sum/Increase Pmt)PRE PAYMENT PRIVILAGE : 20/20 (Lump sum/Increase Pmt)AIRMILES: up to 450 AIRMILESAIRMILES: up to 450 AIRMILESMAXIMUM MORTGAGE: Up to 90% LTVMAXIMUM MORTGAGE: Up to 90% LTVPENALTY: only 2 months penalty if before 3 year PENALTY: only 2 months penalty if before 3 year anniversary, fully open after 3 years.anniversary, fully open after 3 years.PAYMENT FREQUENCY: Monthly, Weekly, Biweekly PAYMENT FREQUENCY: Monthly, Weekly, Biweekly

BANK OF MONTREAL

Principal Principal PaidPaid

Principal Principal BalanceBalance

Mortgage AmountMortgage Amount $200,000$200,000

Cash Back Cash Back $2,000$2,000

Mtg. less Cash BackMtg. less Cash Back $198,000$198,000

Initial Interest RateInitial Interest Rate 2.25%2.25%

Balance After 3 MonthsBalance After 3 Months $4490.91$4490.91 $195,509.09$195,509.09 N/AN/A N/AN/A

Mortgage Float RateMortgage Float Rate 4.1254.125



Balance After 1 YearBalance After 1 Year $9308.19$9308.19 $190,691.81$190,691.81 N/AN/A N/AN/A

Balance After 2 YearsBalance After 2 Years $15967.11$15967.11 $184,032.89$184,032.89 N/AN/A N/AN/A




PRODUCT NAME: Better Than Prime MortgagePRODUCT NAME: Better Than Prime MortgageTERM: 5 YearsTERM: 5 YearsCASH BACK: N/ACASH BACK: N/ATEASER RATE: 1.01% Below Prime for 9 monthsTEASER RATE: 1.01% Below Prime for 9 monthsFLOAT RATE: Prime - .25%FLOAT RATE: Prime - .25%CONVERSION: 3 year term or longer, at the posted rate.CONVERSION: 3 year term or longer, at the posted rate.PRE PAYMENT PRIVILAGE : 15/100% (Lump sum/Increase PRE PAYMENT PRIVILAGE : 15/100% (Lump sum/Increase Pmt)Pmt)AIRMILES: NA AIRMILES: NA MAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: Monthly, Weekly, Biweekly, Semi PAYMENT FREQUENCY: Monthly, Weekly, Biweekly, Semi Monthly Monthly

CIBC Principal Principal PaidPaid


BMO’s BMO’s BalanceBalance

Savings Savings with with BMOBMO


Cash Back Cash Back N/AN/A



Balance After 3 MonthsBalance After 3 Months $1872.96$1872.96 $198127.04$198127.04 $195,509.09$195,509.09 $2617.95$2617.95



Floating RateFloating Rate 4.25%4.25%

Balance After 1 YearBalance After 1 Year $9308.19$9308.19 $192773.45$192773.45 $190,691.81$190,691.81 $2081.64$2081.64

Balance After 2 YearsBalance After 2 Years $13627.96$13627.96 $186372.04$186372.04 $184,032.89$184,032.89 $2339.18$2339.18

Balance After 3 YearsBalance After 3 Years $20304.33$20304.33 $179,695.67$179,695.67 $177,094.03$177,094.03 $2601.64$2601.64



PRODUCT NAME: The Maximizer MortgagePRODUCT NAME: The Maximizer Mortgage

TERM: 5 Years, fully open after 3 years.TERM: 5 Years, fully open after 3 years.

CASH BACK: N/ACASH BACK: N/A

TEASER RATE: Prime - 2.51 for the first 3 months.TEASER RATE: Prime - 2.51 for the first 3 months.

FLOAT RATE: Prime - .40%FLOAT RATE: Prime - .40%

CONVERSION: 3 year term or longer.CONVERSION: 3 year term or longer.

PRE PAYMENT PRIVILAGE : 15/Double Up (Lump sum/Increase Pmt)PRE PAYMENT PRIVILAGE : 15/Double Up (Lump sum/Increase Pmt)

AIRMILES: NA AIRMILES: NA

MAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTV

PENALTY: 3 months in the 1PENALTY: 3 months in the 1stst year, 2 months in the 2 year, 2 months in the 2ndnd year, and 1 year, and 1 month in 3month in 3rdrd year. Fully open after the 3 year. Fully open after the 3rdrd year. year.

PAYMENT FREQUENCY: Monthly, Weekly, Biweekly, Semi Monthly PAYMENT FREQUENCY: Monthly, Weekly, Biweekly, Semi Monthly

First National










Float RateFloat Rate 4.10%4.10%








PRODUCT NAME: Variable Rate MortgagePRODUCT NAME: Variable Rate Mortgage

TERM: 5 Years.TERM: 5 Years.

CASH BACK: N/ACASH BACK: N/A

TEASER RATE: N/ATEASER RATE: N/A


CONVERSION: To 3 Year term or longer.CONVERSION: To 3 Year term or longer.

PRE PAYMENT PRIVILAGE : 25/25 (Lump sum/Increase Pmt)PRE PAYMENT PRIVILAGE : 25/25 (Lump sum/Increase Pmt)

AIRMILES: N/AAIRMILES: N/A


PENALTY:3 Months InterestPENALTY:3 Months Interest

PAYMENT FREQUENCY: Monthly, Weekly, Biweekly PAYMENT FREQUENCY: Monthly, Weekly, Biweekly

ING DIRECT Principal Principal PaidPaid
















PRODUCT NAME: Variable Rate MortgagePRODUCT NAME: Variable Rate MortgageTERM: 5 Years.TERM: 5 Years.CASH BACK: NA CASH BACK: NA TEASER RATE: NATEASER RATE: NAFLOAT RATE: Prime - .50%FLOAT RATE: Prime - .50%CONVERSION: To the Balance of the 5 year term or longer CONVERSION: To the Balance of the 5 year term or longer at special VRM Conversion Rates.at special VRM Conversion Rates.PRE PAYMENT PRIVILAGE : 15/15 (Lump sum/Increase Pmt)PRE PAYMENT PRIVILAGE : 15/15 (Lump sum/Increase Pmt)AIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 90% LTVMAXIMUM MORTGAGE: Up to 90% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: Monthly, Weekly, Biweekly PAYMENT FREQUENCY: Monthly, Weekly, Biweekly

Laurentian Bank

















PRODUCT NAME:EconoPlus MortgagePRODUCT NAME:EconoPlus Mortgage

This is not a prime based variable rate but is very similarThis is not a prime based variable rate but is very similar


CASH BACK: NA CASH BACK: NA

TEASER RATE: 3% off posted 6 Month Conv RateTEASER RATE: 3% off posted 6 Month Conv Rate

FLOAT RATE: Posted 6 Month Conv Rate - .50%FLOAT RATE: Posted 6 Month Conv Rate - .50%

CONVERSION: To the Balance of the 5 year term or longer at CONVERSION: To the Balance of the 5 year term or longer at special VRM Conversion Rates.special VRM Conversion Rates.




PENALTY: 3 months penalty.PENALTY: 3 months penalty.

PAYMENT FREQUENCY: Monthly, Weekly, BiweeklyPAYMENT FREQUENCY: Monthly, Weekly, Biweekly

Laurentian Bank Econo Plus








Initial Interest RateInitial Interest Rate 2.452.45



Revised RateRevised Rate 4.95%4.95%







PRODUCT NAME: Presidential Adjustable Rate MortgagePRODUCT NAME: Presidential Adjustable Rate Mortgage



TEASER RATE: 1.05% below prime for 6 months.TEASER RATE: 1.05% below prime for 6 months.

FLOAT RATE: Prime -.50%, Changes every 3 months.FLOAT RATE: Prime -.50%, Changes every 3 months.

CONVERSION: To 3CONVERSION: To 3rdrd anniversary or longer. anniversary or longer.






Maple Trust Principal Principal PaidPaid

















MCAPMCAPPRODUCT NAME: VIP MortgagePRODUCT NAME: VIP Mortgage



TEASER RATE: 2.51% below prime for 3 months.TEASER RATE: 2.51% below prime for 3 months.

FLOAT RATE: Prime -.40%FLOAT RATE: Prime -.40%

CONVERSION: To 3CONVERSION: To 3rdrd anniversary or longer. anniversary or longer.






MCAP Principal Principal PaidPaid

















PRODUCT NAME: The Smart Mortgage (Product 1)PRODUCT NAME: The Smart Mortgage (Product 1)TERM: 5 Years.TERM: 5 Years.CASH BACK: NA CASH BACK: NA TEASER RATE: NATEASER RATE: NAFLOAT RATE: Prime - .70%FLOAT RATE: Prime - .70%CONVERSION: To the Balance of the 5 year term or longer CONVERSION: To the Balance of the 5 year term or longer at special VRM Conversion Rates.at special VRM Conversion Rates.PRE PAYMENT PRIVILAGE : 20/20 (Lump sum/Increase Pmt)PRE PAYMENT PRIVILAGE : 20/20 (Lump sum/Increase Pmt)AIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: Monthly, Weekly, Biweekly PAYMENT FREQUENCY: Monthly, Weekly, Biweekly

National Bank
















Balance After 5 YearsBalance After 5 Years $37678.30$37678.30 $162321.70$162321.70 $162,328.97$162,328.97 (7.27)(7.27)

NOTE: National only passed BMO on the Last Payment of the mortgage. If you convert to a fixed rate at any time other then maturity, the BMO Balance would be less.

PRODUCT NAME: The Smart Mortgage (Product 2)PRODUCT NAME: The Smart Mortgage (Product 2)

CASH BACK: 1.00% of Mortgage Amount CASH BACK: 1.00% of Mortgage Amount

TEASER RATE: NATEASER RATE: NA


CONVERSION: To the Balance of the 5 year term or longer CONVERSION: To the Balance of the 5 year term or longer at special VRM Conversion Rates.at special VRM Conversion Rates.






National Bank #2






Cash Back Cash Back $2000$2000

Mtg. less Cash BackMtg. less Cash Back $198000$198000










PRODUCT NAME: Holiday Special – Variable Rate PRODUCT NAME: Holiday Special – Variable Rate Mortgage (Product 1)Mortgage (Product 1)TERM: 5 Years.TERM: 5 Years.CASH BACK:$250.00 per $100,000 in free groceries. CASH BACK:$250.00 per $100,000 in free groceries. TEASER RATE: NATEASER RATE: NAFLOAT RATE: Prime - .55%FLOAT RATE: Prime - .55%CONVERSION: To 3 year term or longer.CONVERSION: To 3 year term or longer.PRE PAYMENT PRIVILAGE : 20% plus increase payment to PRE PAYMENT PRIVILAGE : 20% plus increase payment to any amount as long as amortization > 5 years remaining.any amount as long as amortization > 5 years remaining.AIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: Monthly, Weekly, BiweeklyPAYMENT FREQUENCY: Monthly, Weekly, Biweekly

PC Financial Principal Principal PaidPaid
















PRODUCT NAME: Variable Rate Mortgage (Product 2)PRODUCT NAME: Variable Rate Mortgage (Product 2)


CASH BACK:$250.00 per $100,000 in free groceries. CASH BACK:$250.00 per $100,000 in free groceries.

TEASER RATE: 1.30% below Prime for first 3 monthsTEASER RATE: 1.30% below Prime for first 3 months


CONVERSION: To 3 year term or longer.CONVERSION: To 3 year term or longer.

PRE PAYMENT PRIVILAGE : 20% plus increase payment to PRE PAYMENT PRIVILAGE : 20% plus increase payment to any amount as long as amortization > 5 years remaining.any amount as long as amortization > 5 years remaining.





PC Financial #2










Floating RateFloating Rate 4.204.20








PRODUCT NAME: 1 and 2 year open VariablePRODUCT NAME: 1 and 2 year open Variable

TERM: 1 and 2 years.TERM: 1 and 2 years.

CASH BACK:N/A CASH BACK:N/A

TEASER RATE: N/ATEASER RATE: N/A

The Online Site and the Banking by phone, would not confirm a The Online Site and the Banking by phone, would not confirm a rate below prime without a full mortgage application. But many rate below prime without a full mortgage application. But many RBC Variable rate mortgages have been funded at Prime -.50%. RBC Variable rate mortgages have been funded at Prime -.50%.

CONVERSION: Fully open.CONVERSION: Fully open.

PRE PAYMENT PRIVILAGE :Fully OpenPRE PAYMENT PRIVILAGE :Fully Open



PENALTY: Fully Open.PENALTY: Fully Open.


RBC Financial Group

















PRODUCT NAME: 3 Year Capped Variable PRODUCT NAME: 3 Year Capped Variable TERM: 3 Years.TERM: 3 Years.CASH BACK:1.50% of Mortgage BalanceCASH BACK:1.50% of Mortgage BalanceTEASER RATE: N/ATEASER RATE: N/AFLOAT RATE: At Prime. Changes every 3 months. FLOAT RATE: At Prime. Changes every 3 months. CONVERSION: To 3 year term or longer.CONVERSION: To 3 year term or longer.PRE PAYMENT PRIVILAGE : 15/15% Lump Sum/ PRE PAYMENT PRIVILAGE : 15/15% Lump Sum/ Increase Payment.Increase Payment.AIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: MonthlyPAYMENT FREQUENCY: Monthly

Scotia Bank Principal Principal PaidPaid




Mortgage AmountMortgage Amount $200000$200000

Cash Back 1.50%Cash Back 1.50% $3000$3000

Mtg. less Cash BackMtg. less Cash Back $197000$197000







Balance After 3 YearsBalance After 3 Years 20994.1520994.15 $179005.85$179005.85 $177,094.03$177,094.03 $1911.82$1911.82

Since this Scotia Bank Mortgage is only a 3 year term and the BMO Variable is fully open after 3 years, we only did the comparison over 3 years for this one.

PRODUCT NAME: 5 Year Right Rate Variable PRODUCT NAME: 5 Year Right Rate Variable TERM: 5 Years.TERM: 5 Years.CASH BACK: N/ACASH BACK: N/ATEASER RATE: N/ATEASER RATE: N/AFLOAT RATE: Prime - .50% (Rate only changes every 6 FLOAT RATE: Prime - .50% (Rate only changes every 6 Months)Months)CONVERSION: To 3 year term or longer.CONVERSION: To 3 year term or longer.PRE PAYMENT PRIVILAGE : 15%/15% Lump Sum / Increase PRE PAYMENT PRIVILAGE : 15%/15% Lump Sum / Increase paymentspaymentsAIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 95% LTVMAXIMUM MORTGAGE: Up to 95% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: MonthlyPAYMENT FREQUENCY: Monthly

Scotia Bank Principal Principal PaidPaid
















PRODUCT NAME: Best Rate Under Prime MortgagePRODUCT NAME: Best Rate Under Prime MortgageTERM: 5 Years.TERM: 5 Years.CASH BACK:$750 for Purchases only.CASH BACK:$750 for Purchases only.TEASER RATE: N/ATEASER RATE: N/AFLOAT RATE: Prime - .55% Changes MonthlyFLOAT RATE: Prime - .55% Changes MonthlyCONVERSION: To a term longer than the term remaining on your CONVERSION: To a term longer than the term remaining on your Best Rate Under Prime Mortgage.Best Rate Under Prime Mortgage.PRE PAYMENT PRIVILAGE : 15%/Double Up Lump Sum Payment/ PRE PAYMENT PRIVILAGE : 15%/Double Up Lump Sum Payment/ Increase mortgage payment amount. Increase mortgage payment amount. AIRMILES: N/AAIRMILES: N/AMAXIMUM MORTGAGE: Up to 90% LTVMAXIMUM MORTGAGE: Up to 90% LTVPENALTY: 3 months penalty.PENALTY: 3 months penalty.PAYMENT FREQUENCY: MonthlyPAYMENT FREQUENCY: MonthlyTD also offers a “Variable Rate Open Mortgage” @ Prime, and a TD also offers a “Variable Rate Open Mortgage” @ Prime, and a “Discounted Variable Rate Mortgage (Closed)”, but they are not as “Discounted Variable Rate Mortgage (Closed)”, but they are not as good as the one above. (Higher Rates) good as the one above. (Higher Rates)

TD Canada Trust






Cash Back (Purchases Cash Back (Purchases Only) Only)

$750.00$750.00


Interest RateInterest Rate 3.95%3.95%









There are a few other lenders with There are a few other lenders with other Variable Rate Mortgages, but other Variable Rate Mortgages, but all are at Prime - .50% or Less, so as all are at Prime - .50% or Less, so as you can see they do not compete.you can see they do not compete.

So I have left them off to keep this So I have left them off to keep this presentation relatively small.presentation relatively small.

SUMMARYSUMMARY

It should now be very clear as to It should now be very clear as to which Variable Rate Mortgage is which Variable Rate Mortgage is currently the best deal.currently the best deal.

I ask you, what other mortgage I ask you, what other mortgage broker has taken the time and/or broker has taken the time and/or effort to work out these calculations effort to work out these calculations and provide actual proof, as to which and provide actual proof, as to which Bank will save you the most money. Bank will save you the most money.

SUMMARYSUMMARY

This Variable Rate product can be This Variable Rate product can be used for:used for:

1.1. PurchasesPurchases

2.2. RefinancesRefinances

3.3. Equity TakeoutsEquity Takeouts

4.4. Major Home RenovationsMajor Home Renovations

5.5. Debt Consolidations Debt Consolidations

SUMMARYSUMMARY

You saw the potential $12,000 in You saw the potential $12,000 in savings comparing the Variable to a savings comparing the Variable to a 5 year fixed rate @ 5.00%.5 year fixed rate @ 5.00%.

Now just imagine to savings if we are Now just imagine to savings if we are consolidating credit cards that are consolidating credit cards that are currently at 28.8%.currently at 28.8%.

SUMMARYSUMMARYDon’t wait years until your mortgage Don’t wait years until your mortgage matures, if you are paying more then matures, if you are paying more then 4.70% on your mortgage, or have 4.70% on your mortgage, or have significant credit card balances, now is the significant credit card balances, now is the time to get out of your mortgage and start time to get out of your mortgage and start saving.saving.

If you are in one of the other lenders If you are in one of the other lenders variable rate mortgages, it could be in variable rate mortgages, it could be in your best interest to transfer your your best interest to transfer your mortgage. mortgage.

SUMMARYSUMMARY

If you would like additional If you would like additional information on how you can start information on how you can start saving $1000’s with your mortgage, saving $1000’s with your mortgage, don’t hesitate to give me a call.don’t hesitate to give me a call.

DAVE KENDALLDAVE KENDALLVARIABLE RATE MORTGAGE SPECIALISTVARIABLE RATE MORTGAGE SPECIALIST

Mortgage Financial Corp.Mortgage Financial Corp.

(905)336-8448(905)336-8448

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