THINK OUTSIDE THE BOX: If you’re looking to free up more monthly cash flow, this new product may be a great solution.

There’s a great new flexible interest-only mortgage product that could prove beneficial for a number of borrowers, including first-timers, real estate investors, professionals, seasonal workers and others looking for lower monthly mortgage payments.

Designed to help borrowers increase monthly cash flow by providing maximum flexibility, this product can be used for both purchases and refinances.

I recently tried this product out and was really impressed!

My client was a newly-separated single mother who needed a break on monthly mortgage payments. I was able to improve her monthly cash flow on a $354K mortgage from $1,470 down to $1,261 – a savings of $209 per month/$2,508 annually!

This savings was possible thanks to the ability to place 50% of the mortgage as an adjustable rate mortgage (ARM) and 50% as interest only.

Product Highlights

• Interest-only available up to 65% loan to value (LTV) or 2 components of interest-only and amortizing payments up to 80% LTV
• Interest-only portion must consist of at least 50% of total mortgage amount
• Fixed and adjustable rate options available
• Applicable mortgage amounts range from $200,000 to $2 million
• Qualification based on 30-year amortization for interest-only portion
• 20% prepayment privileges, convertible and portable

If you’re looking to free up more monthly cash flow, this new product may be a great solution. I’d be happy to review your current mortgage to ensure you’re matched with a product that makes the most sense for your unique needs.

Steve Garganis July 31, 2018 CanadaMortgageNews.ca