PC Financial Mortgages: a look at the 5 mortgages offered | Mortgages | Discussion forum

President's Choice Financial has quite a few different mortgage options, which can be confusing. So, here is a list some of the basic differences and the features. (Rates of August 3rd 2011.)

1.PC Points Fixed Rate Mortgage – receive PC points on your mortgage anniversary and on closing. It is noteworthy that the mortgage rate is 0.25% HIGHER than the Basic Fixed Rate Mortgage.

2.Fresh Cut Fixed Rate Mortgage – earn PC points when your mortgage closes. Note that this option is 0.15% HIGHER than the Basic Fixed Rate Mortgage.

3.Basic Fixed Rate Mortgage – receive PC Financial's lowest mortgage rate with this option. Note: payment increase options, PC points, anniversary PC points and early payouts are not available with this mortgage.

4.Five % Cash Back Mortgage – receive 5% cash back (upfront) to help with your moving expenses, closing costs or your next vacation. Note: this option is about 1.5% higher than the Basic Fixed Rate Mortgage.

5.6/12 Convertible Mortgage – receive a convertible 6 or 12-month mortgage with the option of locking into a longer term, fixed rate mortgage at any time, without penalty. Note: the 6-month rate is HIGHER than the 10-year fixed rate on the Basic plan (10 year rate: 4.94% vs. 6-month rate: 6.04%). The 12-month rate is .25% lower than the 2-year basic rate.

Features of the PC Financial Mortgage (depending on selected mortgage):
1.Transfer your existing mortgage from another financial institution within 30 days and get a better rate (than the posted rate).
2.Option to earn PC points (on certain mortgages).
3.Up to 120 day rate guarantee/rate hold (on certain mortgages).
4.Pay up to 20% of your original principal down each year (on certain mortgages).
5.Increase your payment amount up to 25% a year (on certain mortgages).
6."Rainy day" option if you need to skip one scheduled payment each year (on certain mortgages).
7.Mortgage Life Insurance available.
8.PC Financial will pay the legal cost, appraisal fee and up to $100 of the discharge costs associated with the mortgage you currently hold at your financial institution, provided your mortgage is greater than $35,000 at a minimum 3-year term.
9."Best rate" offered to you when you renew with PC Financial.
10.Extended amortization periods up to 30 years.
11.Receive a reduction upfront off PC Financial posted rates on 5, 7 & 10-year fixed rate mortgages of $200,000 or more.
12.Five % cash back (on 5% Cash Back Mortgage).
13.Fixed or variable mortgages available.
14.6-month, 12-month, 2-10 year terms…as well as 30 year terms.
15.Multiple mortgage repayment options (weekly, bi-weekly, monthly, semi-monthly, accelerated weekly or accelerated bi-weekly).

(Rates of August 3rd 2011.)

PC Financial Fixed Rate (%)
Term Basic Fresh Cut PC Points Plus
2 year 3.50 3.60 3.75
3 year 3.64 3.74 3.89
4 year 3.64 3.74 3.89
5 year* 3.84 3.94 4.09
6 year 4.30 4.40 4.55
7 year* 4.75 4.85 5.00
8 year 4.81 4.91 5.06
9 year 4.88 4.98 5.13
10 year* 4.94 5.04 5.19

5% Cash Back Mortgage:

term fixed rate (%)
5 year 5.59
7 year 6.05
10 year 6.29

Convertible Mortgage:

term fixed rate (%)
6 Months 6.04
12 Months 3.24