mortagesandforeclosures

"The ability to make lump sum [mortgage] payments is much less critical to the consumer – especially in today's economy."  That's the conclusion of Prospera, a prominent BC credit union. Prospera commissioned a survey of 603 BC adults in April.  The poll was conducted on Prospera's behalf by Ipsos Reid.  Among other things, it found: 60% of respondents under 45 years old said they'd be willing to forgo some mortgage payment flexibility in exchange for a lower interest rate. 59% were unaware that mortgage rates are typically higher when large lump-sum pre-payment privileges are offered. Mortgage payments comprise about 25% of the average Canadian family's monthly expenses. These figures seem believable enough.  From the inquiries we get, most borrowers seem less and less concerned about big pre-payment privileges, despite their potential value.  On the other hand, people do seem to want at least some level of pre-payment ability (5-10% for example).  Very few tell us they don't care about pre-payments "at all."  (Then there are those who absolutely must have a 15-20% lump sum pre-payment option.) Not coincidentally, in conjunction with releasing these survey results, Prospera launched a brand new no-frills mortgage.  It's geared to people who "know they will not take advantage of pre-payment privileges and would rather have a lower interest rate."  Prospera calls it the myStyle Mortgage and it's currently priced at 3.59% for a 5-year fixed.  The myStyle Mortgage is just the latest in a series of no-frills launches over the past year.  It's been said before and we'll repeat it.  No-frills mortgages are a growing trend and lenders who don't offer them will give up a lot of revenue over time.

Get all the information and photos:: http://mortgagewide.info/pre-payments-less-critical-now-prospera/