Best I could get from Vancity was -0.4 on a builder's mtg. Which for such a product I thought was pretty good. 3 months interest to bust out on completion, which is probably what I'll do and seek -0.8 or thereabouts. -0.86 is the lowest advertised right now http://www.ratehub.ca/best-mortgage-rates/5-year/variable
those mtgs are thru brokers and the lender is emcap which is a good company, but that particular product of -.85 has some nasty terms.
- the only way you can get out is if you sell or die
- besides standard penalties, there is also a 2.75% admin fee if do you get out
- while you can switch to a fixed rate if need be, the rates available won't be that great
it has some upsides, but also some risks.
when shopping for a mortgage the rate is not the only thing to consider, look at all the terms of the mtg before deciding who to give your business too. if you're wanting to pay your mtg off fast, things like the allowable amount of prepayments or yearly lump sums can mean years or even a decade or more off the length of your mtg.
and by the way, i'm not a mortgage broker, i just play one on the internet.
We don't know what our limits are, so to start something with the idea of being limited actually ends up limiting us.
Ellen Langer