The loan has a flexible 9 year term which gives the new owner's the ability to make needed upgrades and improvements to the property with a liberal prepayment privilege
. The property was purchased to reposition the asset based on existing vacancy.
The non-recourse financing was done at par and has a prepayment privilege
on a declining scale.
Prepayment penalty: A consideration paid to the mortgagee for the prepayment privilege
. Also known as prepayment penalty or reinvestment fee.
The New York based lender did not charge a fee, and the loan, as well as having a flexible, sliding-scale prepayment privilege
, also allows for a five-year option at 2.5 percent over the FHLBNY rate.
'All RBC mortgages come with amortisations of up to 30 years and full prepayment privileges
. Also, Canadians can take advantage of our 'double up' feature to become debt free faster,' she added.
If necessary the price can include terms such as installment payments, interest rate, security, prepayment privileges
, and the like.
Open pools consist of mortgages where the borrower has prepayment privileges
, which are passed on to the investor when exercised.