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The MERIX Financial
Interest-Only Flex Mortgage

This page will give you everything you need in order to have successful submissions with this innovative, unique product, and grow your business.


MARKETING FOR YOUR USE

We have compiled a few images, videos, and customer-facing assets for you to use on your own social media and websites. Use whatever you like - they are yours for the taking!

Click Here for Marketing Pieces

WHAT IS IT?

The Interest-Only Flex is suitable for homeowners and investors looking to purchase or refinance and/or increase cash flow by utilizing an interest-only payment while qualifying on a 30-year amortization. We call this the Interest-Only Flex because there are several different combinations of interest-only, amortizing payments, and ARM vs Fixed rate combinations, offering your client the ultimate flexibility.  For the product-specific policy and underwriting guidelines, click the button below.

Product Specifications
General Guidelines and Policy

THE BENEFITS 

Since you are only making a payment of the interest, your monthly mortgage payment will be comparatively lower, giving clients choice and flexibility with their finances. For example, on a $400,000 mortgage over 25 years at a 4% interest rate, the usual monthly repayment would be approximately $1,902/month. But if you were making interest-only payments, the monthly cost would be approximately $1,321/month providing an extra $580 in monthly cash flow to use for other purposes.

WHO IS THIS PRODUCT SUITABLE FOR? 

There are many reasons someone would benefit from an Interest-Only mortgage and freeing up their money for other purposes. Click the button below for the applications of this product and who it might be best suited for. This one-pager is also client-friendly, so feel free to share with the potential homeowner to help explain the benefits to them.

Client-Friendly One Pager

WHAT WOULD THE ADDITIONAL CASH FLOW BE FOR MY SPECIFIC DEAL?

We have created a calculator for you to find out the allowable mortgage amount, component splits, and payment amounts to help you determine the optimal mix to best suit your clients’ needs. Please download the calculator below. If you are unsure of your property’s location for the purposes of the sliding scale, please use the Canada Post Look-Up.

*Please note: the calculator requires Microsoft Excel and may not work on Mac computers.  Contact your DBD or PAM if you need assistance.

Interest-Only Flex Calculator

WHAT ABOUT CALCULATING RATIOS?

Once the file is received, your underwriter will split the loan into the respective components and rates. We will automatically qualify each component on the greater of the BOC rate or respective contract rate plus 2% for the purpose of calculating GDS/TDS ratios. If you would like to determine the client’s blended rate for the purposes of calculating ratios prior to submission, please download our APR calculator below.

Blended Rate APR Calculator

HOW DO I SUBMIT MY INTEREST-ONLY FLEX DEAL?

The Interest-Only Flex is available for either MERIX or Lendwise. Click below for a quick step-by-step illustration on how to submit an Interest-Only Flex deal to us.

How to Submit

WHAT IS THE RATE?

This mortgage was designed to increase the borrower's monthly cashflow. There is a premium to the rates on this product, but the monthly mortgage payment will be comparatively lower since there is an interest-only component. 

Click Here for MERIX Current Rates

ANY QUESTIONS?

We have compiled a list of our Frequently Asked Questions regarding this exclusive product. You may find your answers in the document below, or contact your Director, Business Development or Personal Account Manager with any questions.

Click Here for FAQ

FORMS

PAD Formhttp://www.merixfinancial.com/programs/interest-only-flex/PAD-mx.pdf 

PAD Form:  http://www.merixfinancial.com/programs/interest-only-flex/PAD-lw.pdf 

 


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