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Commonly Asked Questions - VIP MPower

Graph showing an upward trend followed by a steep decline to signify variable interest and payment.

Below are some common questions our customers pose to us when our Prime Rate changes.

At any time, if you have additional questions not answered here, do not hesitate to reach out to our Customer Service Centre at 1 800 265 2624 or by email at service@mcap.com.


Should I lock into a fixed rate now?

Whether or not you decide to lock into a fixed rate mortgage, depends on your ability to handle an increase to interest rates over time.  Historically, borrowers who stay in a Variable Rate Mortgage (VRM) tend to save more money over the course of the term. 

It is important to make an informed decision and to understand how Variable Rate Mortgages work.  It is also important to understand that locking into a fixed rate may cost you more money than what an increase in your VRM would be.

The following Mortgage Payment Calculator can be used to determine an estimated mortgage payment based on a new rate:

https://www.mcap.com/residential-mortgages/mortgage-calculators

Will I receive notice should my rate change?

Yes, if there is a change to your mortgage payment, a letter will be sent out to you.  You can view this letter on the portal located at MyMCAP

If Prime Rate changes, when would the change in mortgage rate be effective for me?

Your Variable Rate changes whenever MCAP Prime changes, and comes into effect one business day after the change.  MCAP will automatically issue a letter notifying you of this change. On the first payment after the change to MCAP’s Prime Rate, there will be no adjustment to your payment amount.   On the second payment after the change to MCAP’s Prime Rate, you will see that the payment has been adjusted to reflect the higher rate.

Example:

Payment frequency is monthly

Next mortgage payment is August 1st

Date of MCAP’s Prime Rate change is July 12th

Effective date for rate change is July 13th

Effective date for new payment amount is September 1st

What will my new rate be if Prime Rate changes?

Your Variable Rate will be dependent on what decrement to prime you have with your rate. 

Example:

If MCAP’s Prime Rate is currently 2.70% 

And your rate is Prime   - .25 

Your Variable Rate Mortgage would currently be:  2.45%

If MCAP’s Prime Rate increases by .25  to 2.95% 

Your Variable Rate Mortgage rate would then be: 2.70%

I increased my payment in the past to take advantage of my privilege payment options.Will my payment change if there is a change to MCAP’s Prime Rate?

Yes.  Your Principal &Interest (P&I) portion of your mortgage payment will change and be based on the new interest rate.  The ongoing lump sum portion of your payment will remain the same.

Example:

Principal balance on mortgage: $220,000.00

MCAP’s Prime Rate: 2.70%

Current rate: 2.40%  (Prime -.30)

Current P & I payment is: $974.60

Ongoing lump sum payment: $25.40

Total payment:  $1000.00


New MCAP Prime Rate: 2.95%

New rate: 2.65%(Prime -.30)

New P & I payment is:  $1002.04

Ongoing lump sum payment: $25.40

Total payment: $1027.44

At any time, if you have additional questions not answered here, do not hesitate to reach out to our Customer Service Centre at 1 800 265 2624 or by email at service@mcap.com.

Mortgage Calculators
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