IG has come out with a sub 2% mortgage offering which has created a buzz in the mortgage market. The offer from IG is for a 36 month, variable rate mortgage at 1.99%. Anytime an offer like this surfaces it gets people talking a lot about mortgages and what offers are on the market. This is currently the lowest rate offered on the market but as always it comes with a price by way of fine print:
- You cannot pay out, refinance, early renew or extend this mortgage unless there is a bonafide sale.
- Not portable
- Not blendable
- Not guaranteed best rates if you happen to lock in to a fixed term during the 36 month term
- Maximum $500,000 mortgage
- Payments are set at IG’s current Non Promo posted rate which is currently 3.75%
- Qualify at 4.99% with tighter debt service ratios (27/37)
This offer is certainly not all bad. For someone buying a home that knows with 100% certainty that they will not be moving in the next 3 years this is a tough product to compete with.
In the grand scheme of the Canadian mortgage market, Investors Group is a small player. We have seen smaller lenders make a splash in the market in the past with an offering like this only to get very overwhelmed with new business. This offer is only available through IG Mortgage Specialists of which there are 6 in BC, 3 of which also work as financial planners part time. Allow yourself extra time as there’s a good chance the turnaround time will be longer than normal.