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Investor's Group Rate Sale
 January 5 2016     Posted by Siemens Group


Investor’s Group Rate Sale


Yesterday the media went wild with the announcement of the Investor’s Group Variable Rate Mortgage Rate sale at prime less -1.01% =1.99% based on today’s prime rate of 3%. Like anything in life, nothing is free, so is the case with this latest mortgage offering.

The term is 3 years but it is fully closed, it cannot be paid out or refinanced, unless you sell your home. It is not available to everyone; there are restrictions on qualification including that it is only available for new clients, it's not avilable for rentals, and not available for stated income deals.

So while this looks to be a great rate, which it is… is the rate worth loosing flexibility on converting into a fixed rate, or being allowed to refinance should you need to?

Looking at a mortgage of $350,000 the savings from the Investor’s Group product and that of the best Variable offering without any special restrictions on convertibility or ability to refinance at prime less.55% = $6,485.20 over the 3 yr term or $2,161.73 per annum. But what are the costs associated with purchasing products or any loss of flexibility or return of your investments. Before jumping in on any restricted product it is very important to review the true costs/savings and being clear on what flexibility you are losing.


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