Meridian is offering a fixed-rate mortgage of 1.69% for a one-year term but it’s only available in Ontario for a limited time.
“As a member-owned financial institution, we are able to take advantage of the current bond and lending environment and pass those savings onto our members,” >Bill Whyte, the credit union’s chief member services officer, said in a press release.
The move by Meridian goes against the trend by other major lenders, many of which have recently raised mortgage rates. Last month, both CIBC and RBC announced they were increasing some rates.
The deal is now the best one-year fixed mortgage rate being offered by lenders in Ontario on Ratehub.ca.
Meridian’s offer comes just a couple weeks before new mortgage rules come into effect. Starting Feb. 15, there will be additional down payment requirements for some homes. The new minimum is 5% of the first $500,000 and 10% of any amount between $500,000 and $999,999.
The mortgage rate deal expires on April 30.
As we noted last year, taking advantage of a lower rate might not save you much money. And it could actually cost more over the long term if interest rates were to rise.
Flickr: Robert Fairchild