Mortgage rate specials
Effective July 17, 2018, mortgage rate specials have changed as follows1:
Fixed-rate mortgage offer
Variable-rate mortgage offer
|60-month closed||2.95 (P – 0.75)vi|
Standard mortgage rates
London Life standard mortgage rates are applicable as of July 17, 2018, and are subject to change or withdrawal at any time without prior notice.1
London Life mortgage prime rate
|London Life mortgage prime rate (P)||3.70
|6-month fixed rate||4.20|
Fixed-rate mortgages provide a locked-in interest rate and payment amount, but the portion that goes towards principal versus interest varies from payment to payment – the amount going towards principal increases as you pay off more of your mortgage, while the portion going towards interest decreases. If rates increase, your fixed rate stays the same, giving you the security of a fixed payment for the term of your mortgage.
An open mortgage allows you to pay back your mortgage, in part or full, at any time without penalty. A closed mortgage, on the other hand, requires you to maintain the payment schedule for the entire term you select, but you’re able to pay back a larger part of the principal at a specific time.
A variable-rate mortgage allows you to take advantage of changing interest rates while providing the convenience of a fixed monthly payment. If interest rates fall, more of your payment will be directed to reducing your outstanding mortgage principal. If rates rise, more of your payment will go towards paying interest costs.
|60-month closed||3.10 (P – 0.60)|
Adjustable Rate-Adjustable Payment mortgage
Similar to how a variable-rate mortgage works, an Adjustable Rate-Adjustable Payment mortgage allows you to take advantage of changing interest rates. However, instead of having a fixed monthly payment, the interest and principal payment amounts may fluctuate and are automatically adjusted each month based on our mortgage prime rate.
(1-month rollover period)
|3.10 (P – 0.60)|
Lock and Roll mortgage
Another variation of a variable-rate mortgage, a Lock and Roll mortgage allows you to take advantage of changing interest rates. Here, the interest and principal payment amounts may fluctuate and are automatically adjusted every 6 months based on our 6-month fixed rate, less a pre-established discount.
(6-month rollover period)
* Blend and extend transactions: Occur when a client with an existing London Life mortgage wants to break their existing “in-progress” term to borrow additional money.
i APR 3.335%2, ii APR 3.297%2, iii APR 3.366%2, iv APR 3.400%2, v 3.491%2, vi APR 2.990%2
1 Offers can be changed, extended or withdrawn at any time without prior notice. Rates can be guaranteed up to 90 days following receipt of the request. London Life Insurance Company, the mortgagee (lender), is a federally regulated life insurance company. Inquiries will be directed to a credit planning consultant.
2 The annual percentage rate (APR) represents the total interest and fees charged by the London Life, expressed as an annual percentage. It’s based on a $250,000 mortgage for the applicable term assuming an appraisal fee of $250 (which includes fees associated with determining the value of the property). If there are no cost of borrowing charges, the APR and the interest rate will be the same.