ATB Financial - Personal Services - Mortgages

Down the road you may want to take advantage of the equity you have built up in your home by increasing your current mortgage balance. Your mortgage can be re-advanced up to 80% of the current appraised value. There is no legal fees or visits to a lawyers office required. An administration fee may apply.

Blending and Extending Option:

Another good choice if you're renewing early, buying another home or refinancing is the Blending and Extending option. This option allows you to extend the term of your fixed rate mortgage before your maturity date and avoid any prepayment penalties, provided the new closed term you have chosen is longer than your existing term.

For example, your existing mortgage has 7.75% fixed interest rate with a remaining term of 10 months. Say you wanted to renew early for a 3 year term which currently carries a 6.50% rate. Assuming there is no increase to principal and no prepayment penalty, you can blend the existing and new rates, in this example to 6.85%, by extending for a new term of three years.

With the Blending and Extending option you can also borrow additional funds at the current rate and again, the resulting rate is a blended one.

Portable Mortgage Option:

If you're buying another home, the Portable Mortgage option allows you, without pre-payment penalties, to transfer your existing fixed interest rate, loan balance and maturity date to your new home. If any additional funds are required, that money is borrowed at the current rate and the result is a new mortgage with a blended interest rate¹ .

¹ Blended interest rates are rounded up to the nearest 1/4 of 1%. All rates are per annum calculated half-yearly, not in advance.

Selling Your Home:

If you're selling your home you can usually let the buyer of your home take over, or assume, your existing ATB Financial mortgage. For example, your buyer might wish to assume your mortgage if its fixed interest rate is lower than the current market rate. This is a feature that could help sell your home faster. If your buyer needs additional mortgage money, he or she can take advantage of the Blending and Extending options.

Mortgage Rate Buydown Program:

When it comes time to sell your home, you could sell it faster with ATB Financial Mortgage Rate Buydown Program. A rate buydown is a way of offering your purchaser a reduced mortgage rate by prepaying some of the interest yourself.

ATB Financial usual credit requirements apply to new mortgages. Options may be exercised by either the buyer or seller, but not both.

Let's say your purchaser needs a $75,000 mortgage to buy your home, but doesn't like the current fixed interest rate of, for example, 8%. You can offer to buy down that rate by 1% for one year so that your purchaser gets a 7% interest rate, which translates into substantially lower mortgage payments. Your cost to buy down the rate by 1% for one year on a $75,000 mortgage would be $750. You would pay this amount on or before the closing of the sale of your home.

Skip a Mortgage Payment Option:

Every so often there are times in your life when you could benefit from a little financial breather. ATB Financial recognizes that at times like these some flexibility with your mortgage payments could be a real benefit.

With the Skip Your Payment Option² you can skip up to two months of mortgage payments (principal and interest) in a calendar year. The balance of your current mortgage plus the skipped payments must not exceed the lesser of 80% of your home's present value or the original amount of your mortgage with us.

Your payment will not be affected during the current term of your mortgage. Instead, interest is added to the principal balance. You can choose to pay back your skipped payments at any time, without penalty and without affecting your existing mortgage prepayment privileges. You will pay more interest, so it's important to consider these options in light of your individual financial circumstances.

² Skip Your Payment Option applies to principal and interest payments on conventional mortgages for owner-occupied single family dwellings, including condominiums and duplexes only.

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.