ATB Financial - Personal Services - Mortgages

When you first arranged your mortgage and every time you are faced with a mortgage renewal, you are offered several term options (from 6 months to 7 years) and advised to "Select One".

Have you found this a somewhat difficult decision to make? Have you found yourself asking the question, "What will happen to interest rates?"

Most people ask similar important questions. After all, this is probably your largest monthly personal expense and you want to get it right.

To help you get it right, we offer you the ability to make more than one choice with the Mortgedge.

How does it work?

With this option, you can select more than one term for your mortgage. By selecting more than one term for portions of your mortgage you can diversify your mortgage interest rate risk with a combination of short, medium and long terms.

Using this "laddered" strategy, selecting a short, medium and long term, your entire largest personal liability is not subject to the interest rate risk of one date. This strategy in effect borrows a page from the book that has been followed for years by professional money managers hedging their investment bet for the best overall average return. By selecting a combination of terms, you are hedging your average cost by spreading borrowing risk over a variety of terms.

Choices:

Choose a combination of up to three terms (Closed or Open).

Closed Terms offer lower interest rate in comparison to open terms.
6 Month Convertible 1 Year 2 Year 3 Year	4 Year 5 Year 7 Year

Open Terms offer full flexibility to pay the mortgage in full and make any additional payments at any time at no cost.
6 Month 1 Year 2 Year

An example of the power Edge One:

After purchasing their first home, Jan and Mike have selected three terms (3, 5 and 7 years). Uncertain about future interest rates, they have decided to diversify their mortgage interest rate risk over medium and long terms. Their largest personal liability does not renew on one date.

5 year
closed
Term
($50,000)

20 yr. amortization

3 year
closed
Term
($50,000)

20 yr. amortization

7 year
closed
Term
($50,000)

20 yr. amortization

Putting Your Equity to Work for You.

Your mortgage can be much more than merely a way to pay off your home. It can be a financial tool to help you achieve some of your financial goals.

With the Mortgedge, you can access up to 80% of the current market value of your home, combining fixed rate terms with lines of credit.

With the Mortgedge, you can simply draw the funds you need against the equity you've built up in your home while taking advantage of our low rates. After all the equity in your home belongs to you.

How does it work?

This feature combines conventional mortgages with lines of credit based on 80% of the market value of your home. YOU take control of your personal finances and financial future by designing the Mortgedge today. Then take advantage of lower rates and flexible options when YOU need to.

Immediate Access to the Equity in Your Home?

If you wanted to renovate your home, buy a new car, take advantage of investment opportunities, help with your children's education or deal with an emergency, you might have to apply for a loan or take out a second mortgage which may require that you wait to be qualified. With the Mortgedge you simply draw the funds you need TODAY, secured by the equity you've built up in your home using a line of credit. With the line of credit option, you only pay for what you actually use. (Plus, when you pay down the line you increase your funds available for future needs.)

Saves You Money

Because the Mortgedge is secured by the value of your home, you can take advantage of our best rates. In addition, once you have designed the Mortgedge that best meets your needs, the mortgage documentation is completed and you avoid additional set-up and legal fees in the future.

How can you use your Mortgedge?

Lower your overall cost of borrowing with the flexible borrowing options of the Mortgedge. Open a line of credit when interest rates are high; switch to a fixed-rate when rates decline. Don't pay more than you have to!

Use the flexible borrowing power to:

Finance up to 100% of your investments.
Take advantage of investment opportunities and possible tax deductions on interest paid.
Purchase a new car at a lower rate.
Finance a second/retirement home with no restrictions on where you buy.
Maintain a source of emergency funds.

An example of the power Edge Two:

Claudette and Tom want to increase their investments and establish an emergency fund, but do not have the cash. They own a home with a small mortgage of $50,000. They have put the equity in their home to work by establishing two lines of credit. With the lines of credit, they only pay for what they use but the money is always available.

5 year
closed
Term
($20,000)

20 yr. amortization

3 year
closed
Term
($30,000)

20 yr. amortization

Line of Credit
open
($20,000)

(Investments)

Line of Credit
open
($30,000)

(Emergency)

>> Calculate your mortgage payment (and other mortgage-related items)

For more information on ATB Financial's mortgage solutions, visit any branch of ATB Financial, or call us today at 1-877-424-4045 (toll free). For the branch hours and address of the ATB Financial location nearest you, please use the Branch Locator.