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Three-year mortgage at less than two per cent now offered

VANCOUVER (NEWS1130) – Competition for your mortgage business just got hotter.

In the wake of banks offering five-year mortgages for less than three per cent, Investors Group has a different type of mortgage for less than two per cent.

Investors Group will sign you up for a mortgage at what’s believed to be a record-low 1.99% on a three-year, variable rate term. That’s just over a full percentage point (1.01%) below the prime rate, which surprises mortgage broker Peter Kinch.

“We thought that banks were getting aggressive at 50 or 60 basis points off prime, and quite frankly, the market was very happy with that. So, it’s quite shocking that somebody would go a full one point below prime,” says Kinch.

He describes the move as a “very aggressive way to capture market share.” The Investors Group rate on a typical five-year fixed-rate mortgage, however, is slightly higher than the big banks’ offerings.