Best 5 year rate plan on the market!

Hi,

It is very important that you find out from your clients who are shopping for a mortgage, if some one has taken the time to explain mortgage tiering with them.  Over my last 6 years with Scotiabank I have made it a goal of mine to teach as many clients about this process as possible.  It is the single best way to ensure that a client is setting themselves up not only for the best rate today, but the best rate in the future.

Clients that still believe that the only way to shop for a mortgage is to find the best 5 year fixed rate, might also believe that Blackberries and the Internet are just a fad that will not last!

Here is an example of how mortgage tiering works:

   Purchase Price =     $200,000
   Down Payment = $50,000

   5 year fixed rate mortgage @ 5.89% =                     $50,000
   1 year fixed rate mortgage @ 5.50% =                     $50,000
   5 year variable rate mortgage @ 5.25%=                   $50,000

   Total global limit of Scotia Total Equity Plan =               $150,000

   Advantages of this plan:

   •  Your average mortgage rate works out to be 5.55%!
   •  You have diversified your risk to interest rate changes by having a
   portion of your mortgage up for renewal every year.
   •  If rates increase you only have a portion of the mortgage that you
   have to renew at the higher rates.
   •  If rates decrease you are able to take advantage of the lower rates
   immediately through the variable rate portion.
   •  This plan allows you to have a secured line of credit that is always
   at prime and has interest only payments.  This gives you the security of
   having equity available to use at a moments notice for items like
   renovations, emergencies, or even investments.
   •  As the mortgage terms are paid down you are able to add the equity to
   your line of credit, or use it for such products as a visa or overdraft
   protection at preferred rates.
   •  All the mortgage terms under this plan contain the 15% + 15%
   pre-payment options, as well as the ability to match your payments.
   •  You are able to target your pre-payments to whichever mortgage term
   you want.  This means that you can work on paying down the principle on
   the mortgage that has the higher interest rate before paying down the
   mortgages with the lower interest rates.
   •  The example that I have given you is very flexible and is only a
   suggestion.  The plan can be split up any way you choose!

   Please contact me if you or someone that you know would like more
   information on this innovative strategy.

   Cheers,
    Andrew Beauchesne, AMP, BA
   Mortgage Development Manager
   Scotiabank
   Phone:  (613) 822-6360
   Fax:    (613) 822-2877
   Email:  andrew.beauchesne@scotiabank.com