This mortgage offers a variable interest rate with the added protection of a maximum ‘cap rate.’
If interest rates decrease, your mortgage rate will decrease. However, if interest rates rise, your mortgage rate can never exceed the ‘cap rate.’
This mortgage is closed, meaning that it cannot be paid off until the end of the term, unless you pay a penalty.
- Variable interest rate
- Cap rate: maximum interest rate you can be charged. The cap rate is established at the start of the term of the mortgage.
- Fixed mortgage payments
- Mortgage cannot be paid off in full until end of term
- 5 year term only
Here’s how you can pay off this mortgage quicker
- An additional payment can be made every year without penalty, up to a maximum of 20% of the original amount of the mortgage.
- Mortgage payments can be doubled up any time without penalty, based on payment frequency.
- Choose bi-weekly or weekly payments instead of monthly payments.
Contact a Financial Services Advisor.