Scotiabank announces one more tool to help Canadians become mortgage free faster

Launches four year special rate of 2.99%

TORONTO, March 9, 2012 /CNW/ - Scotiabank today announced a new four year special of 2.99%*, effective March 9, 2012. This change accompanies our three year special of 2.79%*. These rates are part of an overall tool kit that Canadians can use to help own their homes sooner.

"Owning a home is one of life's biggest and best investments and getting mortgage free faster means using all of the tools available," said David Stafford, Managing Director, Real Estate Secured Lending at Scotiabank. "We encourage customers to put these rates to work for them. As you are able, make a payment that you were expecting to make on a standard posted higher rate, and use the difference to pay off your mortgage faster."

For example, increasing your monthly payment based on a rate of 2.99% to a payment based on 3.99% can reduce a 30 year amortization by four years and save you over $18,000 in interest over the life of the mortgage. Additionally, by changing payments to biweekly, customers can save another three years off the mortgage (30 year amortization becomes 23 years), saving another $29,000.

This approach has two benefits. First, all of the extra payment goes directly to paying down the principle. Second, it provides a cushion against rate increases, because if rates increase, you will have already been making a higher payment so the change is easier to manage.

"Rates are important, but they are one tool in a broader kit for managing a mortgage," said Stafford. "Making small changes to reduce the length of a mortgage can really pay off. Switching to bi-weekly or weekly payments, increasing payments by as little as $10 each year and making lump-sum payments when you have a little extra cash can take years off a mortgage and help to save tens of thousands of dollars in interest over the life of a mortgage. We encourage home owners to talk to us for tips and tools that will help them own their homes in the most efficient time possible without it causing significant short-term sacrifice."

Go to www.scotiabank.com/mortgagefreefaster to see how small changes can take years off your mortgage and save tens of thousands of dollars.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 77,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $637 billion (as at January 31, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

*Rates are subject to change without notice. Offers may be withdrawn or extended without notice and cannot be combined with any other rate discounts, offers, or promotions. Other conditions may apply.  All mortgages are subject to applicable credit approval, Scotiabank residential mortgage standards and maximum permitted loan amounts.

Andrew Chornenky, Scotiabank Media Communications, 416-866-4826