The Laurentian Bank of Canada launched its 10X LESS Mortgage today, a new adjustable rate mortgage loan solution.

This Laurentian Bank says the offer surpasses traditional adjustable rate mortgages because of its unique structure and formula, in which the interest rate is adjusted every six months instead of annually, making for a more generous introductory offer.

Unlike traditional mortgages in which the introductory offer for the first year is a closed one-year term rate minus 1.5%, the 10X LESS mortgage’s introductory offer is for the first six months and is a closed six-month term rate minus 3%

As well, Laurentian Bank’s 10X LESS adjustable rate mortgage solution offers unique features that are at the origin of its name:

1. Less money to pay: Smaller payments. The client benefits from the six-month term mortgage rate, generally the lower among fixed-rate terms.
2. Less interest: the 10 terms are offered with reduced rates (six-month term rate).
3. Less time: less interest means more principal – the mortgage loan is paid off faster.
4. Less burden: with a lower interest rate and reduced payments for the first six months, the client can breathe more easily while getting settled in the new home.
5. Less trouble: the loan is automatically renewed during 5 years – no need to worry.
6. Less stress: the loan can be converted at any time to a fixed-rate (closed) mortgage with a term equal to or longer than the remaining term.
7. Less constraining: the client chooses the payment schedule (monthly, biweekly, weekly, with or without an accelerated payment plan).
8. Less stringent: with the 15/15 option, the client has the opportunity to pay off the mortgage loan even faster by increasing monthly payments by 15% or by making an additional 15% payment on the principal.
9. Less worrisome: this loan qualifies for mortgage life/disability insurance.
10.Less doubting and hesitation: with the introductory offer of a 3% reduction in the interest rate for the first six months, the client is sure to make a good choice.

With this new adjustable rate mortgage solution, the client can take advantage of the low short-term interest rates while being protected against sharp interest rate fluctuations since the rate is revised every six months.