Six-month term – A possible stress reducer

Mortgage Tips Brian Turner 30 Jun

Using a Six-Month Term to Qualify for a Larger Purchase

Real estate sold sign - could be yours with a six-month rate

Six-month term as a stress reducer

One of the lenders, with whom I work, recently came out with a six-month fixed rate. The rate is 4.5% with 1% deferred interest. If the borrower renews at the end of the six-month term for 3 years or longer, they waive the 1% deferred interest. This means that the borrower qualifies at 6.5% instead of their current rate (5.04%) plus 2% (7.04%). Anyone using this special rate qualifies for a purchase of about 4.85% more. 

 

There is a risk that at the end of the term, fixed rates will be higher than they are today. However, for the last three months, this lender has consistently been 0.1%-0.2% below other lenders. These rates are current as of June 30, 2023, and are subject to change at any time.

For more details, please do not hesitate to contact me at 249-353-3278, 819-425-0911, or at bturner@nextdayapprovals.ca. Alternatively, you can apply online here.