OUR BETTER STANDARD MORTGAGE
The Works Fixed
As many features as feathers? Close.
Your great fixed rate comes fully-loaded, with flexible features and fewer fees. A wiser mortgage choice to help forward your financial goals — it's eye-opening how much you could save.
Industry-best rate and features help save money and stress.
Choose a term from 6 months to 5 years that works for you.
Fixed rate and payments for stress-free budgeting.
Better Prepayment Privileges
Higher lump sum allowed.
You get up to 20% maximum of lump sum ability per anniversary year. In other words, at any time during the mortgage year, on a regular payment date, you can pay lump sums totalling up to 20% of the original principal amount (set at the beginning of the term*) without penalty (minimum amount $100). Yes, that means you could pay off your entire mortgage in less than 5 years. And yes, the entire lump sum payment will go toward your principal.
*Term is the length of time your rate and options are set, which is not the same as amortization. The original principal amount is reset for a new term upon rate conversion/lock-in, early renewal or regular renewal.
Increase payments with your higher lump sum allowance.
Utilize your annual lump sum ability of up to 20% to increase your regular payments. This feature can be turned on and off throughout the term of your mortgage. A big lump sum payment can be made to reduce the size of all future regular payments.
Lower Payout Penalties
A penalty is charged for breaking your mortgage term before your maturity date (renewal period) — for example, if you decide to sell your home. The penalty depends on your rate type, remaining term, and the interest rate used to calculate the penalty.
THINK Financial only uses the current market rate for penalty calculations versus the (often higher) posted rate many lenders use (see THINK FAQs for more information).
The amount of penalty incurred for this rate type would be the greater of either:
- At the current mortgage rate, 3 months interest (plus a pro-rated portion of your original rebate and penalty covered by us, if received), or;
- The Interest Rate Differential (IRD), which is the future interest on your current mortgage, minus the interest of an equivalent mortgage rate if issued today.
IRD penalty example:
If you received a $400,000, 5-year fixed mortgage through us on July 1st at a rate of 4.59%, your IRD penalty, if rates stay the same, would be $0, so your penalty would be 3 months interest, approximately $4,590, depending on exactly when you paid off the mortgage.
If rates were to fall, your penalty would increase due to the IRD penalty. For example, if fixed rates fell to 3.59% in year 2, your penalty would be about $13,500.
Lower Prepayment Charges
If you want to pay off your mortgage faster than your prepayment privileges allow, you can, but it will incur penalties charged depending on your rate type, remaining term, and the interest rate used to calculate the penalty.
For example, if you decide to place a 30% lump sum (of the original principal amount set at the beginning of your term), 20% is allowable and on the remaining 10%, you would pay the greater of either 3-months interest or IRD (Interest Rate Differential) penalty.
Change Your Payment Frequency
Unlike most lenders, we don't charge a fee if you want to change your payment schedule. Monthly or biweekly is considered standard (may depend on when you receive your paycheque), but other options include semi-monthly, accelerated biweekly, weekly, and accelerated weekly. Choosing an accelerated schedule can help save thousands on interest costs over the life of your mortgage and reduce your amortization by several months or years.
Recast for Lower Payments
Are you pre-paying a lump sum on your mortgage principal or have you accumulated an amount down through increased payments? Our free (no fees) mortgage recast feature allows you to move your amortization back to where it should be (original amortization minus time served) to lower your payments now rather than wait for renewal.
During your current mortgage term, you may be able to transfer your existing mortgage (rate or blended rate and product features) to a new property without breaking your contract and paying a penalty (a fee may apply). Not all lenders offer this feature, and your ability to port can depend on government limitations and funding restrictions (which may change without notice). Please provide at least 30 days' notice before your possession date to allow time for your port approval.
Cash-Back and Rebates
You may want a few thousand of your mortgage money upfront to cover expenses. We can offer you cash back or a cash rebate, which will result in a slightly higher mortgage rate — but allows you access to needed funds at a lower rate than a HELOC or credit card.
No Hidden Fees
We offer exceptional mortgage service with fewer fees and full transparency. You won't be charged made-up fees, like 'wire,' 're-investment,' or other admin fees that aren't directly related to a specific action or change. Plus, we occasionally cover certain fees, for example, discharge and appraisal fees for a switch to THINK Financial (depending on qualifying details).
Other options are part of your premium mortgage product at a great rate, including assumable mortgage, convertibility (from a variable rate into a fixed rate), early renewal, and 'blend and extend' (fees may apply). Please check out Our Mortgages or contact your True North Mortgage broker for more information.
Easy to Read
Our mortgage commitments are easy to read and understand, and contain all the fine print you need to know for your contract.
Terms and conditions apply.
The Works mortgage product requires a minimum principal of $100K and a maximum amortization of 25 years. A 1% administrative fee may be incorporated into a higher mortgage rate. The mortgage must fund within 40 days of the loan application date.