Rates for the new product start at 5.95%
Vancouver-based alternative lender Neighbourhood Holdings has announced a new three-year mortgage with rates starting at 5.95%.
The product, which is offered as an interest-only or amortized mortgage, allows borrowers to pay out at any time with only a three-month interest pre-payment penalty.
“By extending the industry standard one-year term to a true three-year term and lowering our rates, we are now able to give borrowers peace of mind with their mortgage, and additional flexibility when it comes to managing their cash flows,” said Taylor Little, CEO of Neighbourhood Holdings.
Little said that the mortgage is intended to provide support to Canadians amid the turmoil of the coronavirus outbreak.
“In the shadow of the pandemic, borrowers are experiencing unprecedented uncertainty,” Little said. “We’ve developed this product to help stabilize the industry, and simultaneously address long-standing industry feedback from brokers around the need to close the gap between the B-lenders and alternative lenders.”
Aside from this, Neighbourhood Holdings is also offering some of the lowest alternative lending rates in several key markets like British Columbia, Ontario, Quebec, Alberta, Manitoba, and Nova Scotia.
Over the past few months, the alternative space has seen significantly increased traffic, with landlords and tenants alike rushing to the sector for assistance.