Discount Mortgage Canada Inc.

Take Advantage Of The Lowest Interest Rate In 30 Years!

The Adjustable Rate Mortgage
is quickly becoming one of the most popular options for consumers. There is a tremendous spread between the prime interest rate and a fixed long term mortgage. This spread can be as much as 3% and with the average mortgage in Canada approaching $130,000, this difference in interest rates can be tremendous.

How does an adjustable rate mortgage work?
The adjustable rate mortgage is quite different than traditional mortgages in that long term mortgages are priced according to Bond market, while the adjustable rate mortgage is priced in accordance with the prime interest rate.

The longer the term, the higher the interest rate. This is not always true but generally speaking it does hold true. By selecting a longer term mortgage you are agreeing to pay a higher interest rate for the term. It is similar to paying an insurance premium to guarantee the interest rate but the insurance premium is the higher rate.

An adjustable rate mortgage gives you total control. Your mortgage would renew every 3 months at a fixed interest rate. If you change your mind and decide to convert to a longer term, you would be guaranteed a minimum discount off the banks posted rates.

This mortgage allows you to have the best of both worlds.

Special Features

Maximum 95% LTV
Semi-annual compounding
Five year term delivered in automatically renewed three months fixed rates periods
Prior to conversion open for repayment on payment of two months interest to the third anniversary and without penalty thereafter
Monthly, weekly, or bi-weekly payments available
15% and 15% prepayment/payment increase
Ability to convert to a 3, 4, or 5 year term at any time at a guaranteed discount
The discount off Royal Bank Prime is guaranteed for the renewal periods

Prime Interest Rate: Subject to change	5.00%
Initial 3 months:	1.05% discount
Discount: Prime: After initial 3 months	(-.50%)
Guaranteed Discount:	3 year - 1%
Off the banks posted rates:	4 year - 1%
At time of locking in:	5 year- 1%

At time of locking in, you would be guaranteed a 1% discount off the banks posted 3, 4, or 5 year rate.

O.A.C.