With No Bull Mortgages, what you see is what you get.
Say goodbye to negotiating and guessing what the "actual" rates are. And say hello to a clear, straightforward and straight-up process to get you into your home.
On August 1, 2013 we decided to do things differently. The inflated posted mortgage rates you see at most other banks—the rates that nobody pays anyway—are gone at ATB. With our No Bull Mortgages, the rates you see are the rates you should expect to pay.
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Why No Bull rates really matter.
If you break your mortgage mid-term—let's say you upsize or downsize your home—you're often charged a prepayment penalty. For a fixed rate mortgage, the prepayment penalty is the greater of three months interest rate or the Interest Rate Differential (IRD).
These calculations typically use posted mortgage rates and factor in the discount you negotiated on your mortgage. With our No Bull Mortgages, your prepayment fees are based simply on our posted rate—which is our actual rate.
What does that all mean in English?
It means that you may pay an inflated, unfair penalty if you need to break your mortgage early with other banks.
As you can see from the example below, ATB's No Bull Mortgages can result in some pretty hefty savings—$6,048 in the scenario here!
On July 31, 2011, you buy your first home and sign a five-year, fixed-term mortgage. As your family grows, you start looking at a bigger home, and after a few months of searching, you find the perfect one—on August 1, 2013.
Because of this unexpected upgrade, you now have to break your mortgage three years before it matures (you have $320,000 left on your mortgage). When you signed your current mortgage, you weren't concerned about prepayment penalties, but as you can see below, prepayment penalties can have a significant financial impact on your bottom line.
||July 21, 2011|
|Date you break your mortgage
||August 1, 2013|
|How much you have left owing on your mortgage
|Your original mortgage term
|How many years left you have on your term
||Mortgage breakage fee by most other banks
||Mortgage breakage fee with ATB's No Bull Mortgages|
|5-year posted rate when you got your mortgage
||Not applicable for ATB's IRD calculation|
|Your actual contract rate
|3-year posted rate on August 1, 2013 (the day you break your mortgage)
||(Contract rate - [Posted rate for remaining term - Discount from original mortgage]) x Principal outstanding x Remaining term
||(Contract rate - Posted rate for remaining term) x Principal outstanding x Remaining term|
|Difference in fees
For more information on what our No Bull Mortgages mean for your bottom line, stop by your local branch, talk to a local mortgage specialist, or call 1-877-424-4045.