Merix Financial's 50/50 Wise Mortgage

There's a new mortgage product on the market.

Merix Financial has launched a new mortgage product in Canada called the 50/50 “Wise” Mortgage, which enables borrowers to lock in half of their mortgage at a five-year fixed rate and the remaining half at a five-year variable rate. This is an excellent way to diversify your mortgage debt the same way you would diversify your investments such as your RSP. It's an excellent way to get the best of both a variable rate and a fixed rate mortgage.

The product is suited to a variety of borrowers including:

• Clients who would normally go fully variable but are afraid prime rate is at its bottom.
• Those who aren’t comfortable being locked into a fully fixed rate.
• Clients who can’t decide between a fixed or variable mortgage.

Each portion of Merix’s 50/50 Mortgage operates independently – like two separate mortgages – yet the product is registered as only one charge.

Benefits include:

• 20% annual lump-sum pre-payment privileges
• 20% annual payment increase ability
• Portability
• The option to lock in the variable-rate portion at any time
• A 120-day rate hold on purchases (60 days on refinances)
• Up to a 35-year amortization (the minimum is 20 years)

No switches or transfers are permitted and there are no pre-approvals. Other conditions apply as well so be sure to call.

Brent Irving
Mortgage Expert

Your friend in the mortgage business
Tel: 604-764-6336
Fax: 604-541-6323
Toll Free: 1-888-665-1344
Email: birving@dominionlending.ca

Web: www.BrentIrving.ca

Web: MyMortgageBC.com

The Difference between a Variable and Fixed Rate Mortgage

Many people are confused between the difference of a fixed rate mortgage and a variable rate mortgage. Don't fret the difference is fairly straight forward.

If you choose a fixed rate mortgage you get pay the same mortgage rate for the term you choose. This takes the fear out of rising interest rates and can make it easier to budget for most people. If you choose a 5 Year fixed mortgage at 5.09% is simply means that the rate you'll be paying will be 5.09% for the 5 years. If rates go up you're protected but if rates go down you have to stay with your term until the 5 years is up.

If you choose a variable rate mortgage the rate is tied to the Bank Prime Rate which is determined by the Bank of Canada. If the Bank of Canada lowers the Prime rate you benefit from a lower rate and if the Prime rate goes up so does your mortgage rate. Most lenders offer you the choice to convert from a variable rate mortgage to a fixed rate mortgage with no penalty.

At the time of this post most analysts believe the Bank of Canada won't be raising the Prime rate anytime within the near future and possibly even lower it.