When securing a mortgage, comparing rates and features from various lenders is crucial to finding the best fit for your financial goals. One lender worth considering is MCAP, Canada’s largest independent mortgage finance company.
This article will delve into MCAP mortgage, current rates, product offerings, and customer reviews to help you make an informed decision.
What is MCAP?
- Time in service: Since 1981
- Contact: 1-800-265-2624
MCAP, short for Mortgage Company of America, is a prominent B Lender in Canada, offering homebuyers and property investors a wide range of mortgage solutions. With over $150 billion in assets under management, MCAP has established itself as a significant player in the Canadian mortgage market.
Today, the company boasts over 1,500 employees across 10 offices in major Canadian cities, including Toronto, Montreal, Halifax, Regina, Waterloo, Edmonton, and Vancouver.
MCAP operates in three main business lines:
- Residential mortgages: Offering a variety of mortgage products for homebuyers and refinancers.
- Commercial mortgages: Providing financing solutions for commercial properties and investments.
- Development finance: Supporting real estate developers with construction loans and other financing options.
With over 400,000 active mortgage accounts, MCAP has demonstrated its ability to effectively serve a significant portion of the Canadian mortgage market.
What are the current MCAP Mortgage rates?
MCAP offers competitive mortgage rates across various terms and products. Here’s a comparison of MCAP’s rates with the market averages and big banks:
| Term | MCAP | Market Best | Big Bank Range |
|---|---|---|---|
| 5-Year Fixed | 4.74% | 4.04% | 4.59% – 4.89% |
| 5-Year Variable | Prime -0.70% (4.75%) | Prime -1.10% (4.35%) | 4.65% – 5.10% |
| 3-Year Fixed | 5.09% | 4.09% | 4.49% – 4.99% |
*Rates are subject to change and may vary based on individual circumstances and qualifications.
Several factors can impact the mortgage rate you qualify for with MCAP, including:
- Your credit score and history
- Employment stability and income
- Debt-to-income ratio
- Down payment amount
- Property type and location
- Mortgage default insurance (for down payments less than 20%)
To access MCAP’s mortgage rates, contact the lender directly or work with an MCAP-approved mortgage broker. Engaging a broker can be advantageous, as they can compare rates and products from multiple lenders to help you find the best overall deal.
MCAP Prime Rate
The MCAP Prime Rate is a key factor in determining the interest rates for variable-rate mortgages. MCAP Prime Rate stands at 5.45%, having last changed on December 11, 2024.
Changes in the MCAP Prime Rate directly influence the interest rates of variable-rate mortgages. When the Prime Rate decreases, borrowers with variable-rate mortgages can benefit from lower interest rates and potentially lower monthly payments. Conversely, variable-rate mortgage holders may face higher interest costs when the Prime Rate increases.
What Mortgage Products Does MCAP Offer?
MCAP offers a diverse range of mortgage products to cater to the needs of various borrowers, including:
MCAP Fixed Rate Mortgages
MCAP fixed-rate mortgages offer terms ranging from 1 to 10 years, providing borrowers with the stability of a consistent interest rate and predictable monthly payments throughout the term.
- Ideal for borrowers who prioritize budget stability and want to lock in their interest rate.
- Prepayment options: Lump-sum payments up to 20% of the original principal annually, and payment increases up to 20% annually.
- Portable, allowing you to transfer your mortgage to a new property without penalty.
MCAP Variable Rate Mortgages
MCAP variable-rate mortgages are available in 3 and 5-year terms, with interest rates that fluctuate based on changes in the MCAP Prime Rate, offering the potential for savings if interest rates decrease during the term and the flexibility to convert to a fixed rate at any time without penalty.
- Monthly payments remain consistent, but the portion applied to principal vs. interest may vary
- Prepayment options: Lump-sum payments up to 20% of the original principal annually, and payment increases up to 20% annually
- Suitable for borrowers comfortable with some interest rate risk and seeking potential savings
MCAP Fusion Mortgage
This product combines a mortgage with a Home Equity Line of Credit (HELOC), allowing borrowers to access their home equity as they pay their mortgage principal.
- Flexible financing options for home renovations, investments, or other needs
- Choose between fixed or variable rates for the mortgage portion
- HELOC portion has a variable interest rate based on the MCAP Prime Rate
- Borrow up to 65% of your home’s value through the HELOC
- Suitable for homeowners who want to leverage their home equity while maintaining a traditional mortgage
MCAP Safeguard Mortgage
This innovative second mortgage allows homeowners to access equity without affecting their existing first mortgage, avoiding early payout penalties on the first mortgage.
- Suitable for homeowners needing funds for debt consolidation, investments, home renovations, or other purposes
- Competitive interest rates and flexible repayment options
- Maximum loan amount of up to 85% of the property value, less any outstanding mortgage balance
MCAP Small Rental Program
This program provides financing for up to 4 rental properties, including condos, single-family homes, duplexes, triplexes, and fourplexes.
- Ideal for investors looking to expand their rental property portfolio.
- Up to 80% loan-to-value (LTV) for insured mortgages, with a maximum purchase price of $800,000. Minimum loan amount is $50,000.
- Property must be at least 30 kilometres from a population centre larger than 25,000.
MCAP Secondary Home Program
This program offers rent-free financing for second homes or vacation properties the borrower or their immediate family occupies.
- Accessible with as little as a 5% down payment for qualifying borrowers
- Competitive interest rates and flexible terms
- Ideal for families looking to purchase a vacation home or provide housing for family members
By offering a wide array of mortgage products, MCAP aims to accommodate Canadian homebuyers and property owners’ diverse financial needs and goals.
What features come with MCAP mortgages?
MCAP mortgages come with several features and benefits designed to provide flexibility and convenience to borrowers:
MCAP Prepayment Privileges
- Lump-sum payments: Make additional payments of up to 20% of the original principal annually without penalty
- Payment increases: Increase your regular mortgage payment by up to 20% annually
- Accelerated payment frequencies: Choose from monthly, semi-monthly, bi-weekly, or weekly (accelerated) payment schedules to pay off your mortgage faster
MCAP Mortgage Portability
Transfer your existing MCAP mortgage to a new property without penalty, with the option to increase or decrease the mortgage amount based on your needs.
MCAP Mortgage protection insurance
MCAP offers optional mortgage protection insurance through Sun Life Insurance to cover your mortgage payments in the event of death or disability.
MCAP Property tax payments
Have your property taxes collected and paid through your mortgage, simplifying the process and ensuring timely payments.
MCAP Online access
The MyMCAP online portal allows you to conveniently manage your mortgage 24/7. The portal lets you view your mortgage details, make prepayments, check your property tax information, and more.
These features and benefits give MCAP mortgage holders the tools to better manage their mortgages and achieve their financial goals more efficiently.
How can I get a mortgage with MCAP?
To obtain an MCAP mortgage, you can contact the lender directly or work with an MCAP-approved mortgage broker. Here’s a step-by-step guide to the process:
- Get pre-approved: Submit an application to MCAP or your mortgage broker to get pre-approved for a mortgage. This will give you a clear idea of how much you can borrow and lock in an interest rate for up to 120 days.
- Gather required documents: You’ll need to provide documentation to support your mortgage application, such as proof of income, employment, down payment, and identification.
- Choose your mortgage product: Based on your financial goals and circumstances, select the MCAP mortgage product that best suits your needs.
- Finalize your application: Once you’ve found a property and accepted an offer, submit your complete mortgage application and purchase agreement.
- Obtain mortgage default insurance (if applicable): If your down payment is less than 20% of the purchase price, you’ll need to obtain mortgage default insurance from CMHC, Sagen, or Canada Guaranty.
- Close your mortgage: Upon approval, your lawyer will work with MCAP to finalize the mortgage documents and transfer funds. You’ll be responsible for covering closing costs, such as legal fees, land transfer taxes, and title insurance.
By working with a mortgage broker, you can benefit from their expertise in navigating the mortgage process and their ability to compare offers from multiple lenders to find the best solution for your needs.
What do reviews say about MCAP mortgages?
MCAP has garnered generally positive reviews from customers, with some key strengths and potential drawbacks to consider:
Pros of MCAP mortgages
- Competitive interest rates compared to the big banks
- Wide range of mortgage products to suit various needs
- Flexible repayment options and portability
- Convenient online access through the MyMCAP portal
- Efficient and helpful customer service
Cons of MCAP mortgages
- Some customers have reported longer processing times compared to other lenders
- Mortgage default insurance premiums may be slightly higher than other providers
- Limited brick-and-mortar presence, with most interactions occurring online or through brokers
While MCAP has received mostly positive feedback, it’s essential to remember that individual experiences may vary. It’s always advisable to thoroughly research and compare multiple lenders before deciding.
Summary
MCAP is a reputable non-bank lender that offers competitive mortgage rates, a wide range of products, and flexible features to help Canadians achieve their homeownership goals. With over $150 billion in assets under management and a strong presence across the country, MCAP has established itself as a reliable choice for mortgage financing.
When considering an MCAP mortgage, comparing rates and terms with other lenders is essential to ensure you get the best deal for your specific needs. Working with a mortgage broker can be advantageous, as they can access a wide range of lenders and provide expert advice tailored to your situation.
Ultimately, the right mortgage depends on your unique financial circumstances, goals, and risk tolerance. By carefully evaluating your options and seeking professional guidance, you can make an informed decision that sets you up for long-term financial success.
To explore MCAP mortgage options or compare rates from multiple lenders, connect with a trusted mortgage broker today to get personalized advice and competitive rate quotes.
FAQs
What credit score do I need to qualify with MCAP?
While MCAP does not disclose a minimum credit score requirement, a score of at least 650 is generally considered favourable for mortgage approval. Other factors, such as income and debt ratios, also play a role in qualification.
Can I get a mortgage from MCAP with a low down payment?
Yes, MCAP offers mortgages with down payments as low as 5% for qualified borrowers. However, mortgages with down payments of less than 20% require mortgage default insurance, which can add to the overall cost.
How do I renew my MCAP mortgage?
Before your mortgage term expires, MCAP will send you a renewal offer. You can choose to accept the offer or shop around for rates from other lenders. It's recommended to start the renewal process at least 120 days before your term ends to ensure you have enough time to find the best deal.
Are MCAP mortgage rates lower than banks?
MCAP mortgage rates are competitive with the big banks and may be lower sometimes. However, rates can vary based on individual circumstances, so comparing offers from multiple lenders is essential.
Is mortgage life insurance mandatory with MCAP?
No, mortgage life insurance is not mandatory with MCAP. However, MCAP offers optional mortgage protection insurance through Sun Life Insurance, which can cover your mortgage payments in the event of death or disability.
How do I contact MCAP for mortgage inquiries or support?
You can contact MCAP for mortgage inquiries or support by phone at 1-800-265-2624, by email at [email protected], or by visiting one of their regional offices. MCAP's customer service team is available Monday to Friday from 8 am to 8 pm EST.
What is the maximum amortization period for an MCAP mortgage?
The maximum amortization period for an MCAP mortgage is 25 years for mortgages with less than a 20% down payment (insured mortgages) and 30 years for mortgages with a down payment of 20% or more (uninsured mortgages).