TORONTO, ONTARIO--(Marketwired - Jan 31, 2014) - RMG Mortgages offers one of the last remaining mortgages that maximize cash flow for well-qualified borrowers, earning it Canadian Mortgage Trends' 2013 Mortgage of the Year award.
RMG's stand-out feature is its ability to offer 35-year amortizations to those with at least 20% equity. It is one of only a handful of lenders with this option following Ottawa's elimination of 35-year amortizations on high-ratio mortgages in 2011, and on most conventional mortgages the year after.
"RMG's long-term amortization fills an important void," notes Rob McLister, editor of CanadianMortgageTrends.com. "While a 35-year amortization implies a greater interest cost, it also provides an opportunity to earn and/or save money overall."
"Extended amortizations are suited to folks who could afford the same home with a shorter amortization, but who prefer lower payments so they can divert income to better uses. That may include paying down higher-interest debt, building a tax-free savings account for retirement or emergencies, funding educational expenses, building a business, financing renovations, offsetting childcare or medical expenses, and so on."
Alternatively, borrowers can base their minimum payments on 35 years and then increase them to approximate 25-year payments. That provides the interest savings of a shorter amortization while letting homeowners revert to lower payments if needed.
Besides amortization flexibility, RMG has built a reputation for some of the country's deepest rate discounts, a generous mortgage switch program, fair penalties on its standard mortgages and ample prepayment privileges. For these reasons, the RMG mortgage is Canadian Mortgage Trends' 2013 Mortgage of the Year.
For more see: Mortgage of the Year - RMG
About Canadian Mortgage Trends (CMT)
Founded in 2006, Canadian Mortgage Trends is Canada's leading mortgage news publication, with an audience of over 550,000 consumers and industry professionals.
About CMT's Mortgage of the Year
Canadian Mortgage Trends grants its Mortgage of the Year each January to the financing product that has offered the greatest innovation, flexibility, and/or cost savings to homeowners in the previous year. This is the sixth year that the award has been presented.