TORONTO—Meridian Credit Union here has rolled out a unique mortgage offering with a fixed 1.49% APR—and an 18-month term.
The $11-billion credit union, the largest in Ontario, told CUToday.info the loan is aimed at people who plan to sell the property in the near future. The rate is believed to be the lowest posted mortgage rate in Canadian history.
"With this mortgage offering, we will be helping Ontarians to pay off their mortgages sooner while saving money in interest costs," said Bill Whyte, chief member services officer for Meridian, in a statement. "As a responsible lender, Meridian recognizes there is no cookie-cutter approach to selecting a mortgage solution. In addition to this 18-month mortgage offering, Meridian offers a full suite of mortgage options including fixed, variable, mortgages for business owners and construction mortgage solutions," added Whyte.
Meridian already offers what it calls its “20/20 prepayment program,” which allows members the option of paying down up to 20% of the original principal balance without penalty each year, either through lump-sum payments or increased monthly payments. The two repayment options can be combined provided they do not exceed 20% of the original principal balance.