Strong housing market continues to fuel demand for flexible mortgage options



    GMAC Residential Funding of Canada and Mortgage Intelligence answer
    demand with new mortgage features

    TORONTO, March 13 /CNW/ - National home sales increased in almost every
province during the month of January, fuelling continued demand for flexible
mortgage options that make buying a home easier for Canadians. In an ongoing
effort to meet the needs of today's mortgage consumer Mortgage Intelligence
Inc., a GMAC Company, is now offering Canadians the option of an extended
40-year amortization with zero down payment on its i secure(R) mortgage.
    According to a recent survey conducted by Canada Mortgage and Housing
Corporation (CMHC), 40 per cent of Canadian mortgage consumers are willing to
make higher mortgage payments if it means they can buy a home sooner with a
smaller down payment. Thirty per cent of Canadian mortgage consumers would
also take longer to pay off their mortgage if it would improve their cash
flow.
    "Home ownership is important to Canadians, but so is having the freedom
to meet other financial demands," says John Schipper, Senior Vice President,
GMAC Residential Funding. "Thirty per cent of all our i secure(R) approvals
have had amortizations greater than the traditional 25 years since we
introduced this feature to our mortgage product. By providing Canadians with
up to 100 per cent of the value of their home, they now have the ability to
own a home sooner, but keep their monthly payment lower by choosing a longer
amortization."
    The CMHC survey also shows that 75 per cent of Canadian mortgage
consumers want to pay off their mortgage as quickly as possible, and 50 per
cent plan to use any extra money to pay down their mortgage principal.
    "Canadians increasingly see the value of entering the housing market from
a financial perspective and want to take advantage of it by getting into the
market sooner," continues Schipper. "Home ownership is a great way to build
equity and Canadians, particularly first-time buyers, make the most of their
investment by using their free cash flow and any extra money to pay of their
mortgage quickly, which is sound financial planning for any stage of life."
    Underwritten by GMAC Residential Funding of Canada, i secure(R) gives
homebuyers the ability to lock into their mortgage at a great rate and have
peace of mind knowing their monthly payments won't fluctuate. The introduction
of 100 per cent financing now provides homebuyers with the opportunity to get
into the market sooner, while the option of a 30, 35, and 40-year amortization
helps reduce their monthly payment and have the flexibility to meet other
financial demands.
    Whether shopping for their first mortgage, renewing an existing mortgage
or refinancing, Canadians are increasingly exploring their options in today's
mortgage market. Seventy per cent of mortgage consumers are checking
competitive rates, getting information from other lenders or shopping for
options and 27 per cent are turning to a mortgage broker for valuable advice
on what mortgage is best for them, according to the CMHC survey.
    "Today's mortgage consumers are extremely savvy shoppers who want the
best product for their needs and sound advice as to what option is best for
their financial situation," says Stan Falkowski President, Mortgage
Intelligence Inc. "We are seeing continued growth in our industry as more and
more Canadians turn to mortgage brokers for their ability to provide the
widest variety of options and solid financial counsel."

    About Mortgage Intelligence Inc.

    Mortgage Intelligence Inc. is among the largest and fastest growing
mortgage brokers in Canada, with more than 1,000 independent consultants and
associates in offices across Canada. Mortgage Intelligence consultants help
clients make better mortgage decisions for their home, revenue or vacation
properties, renewals, home renovations, debt consolidation needs, and
specialized mortgage requirements. Mortgage Intelligence has become a leader
in introducing innovative mortgage products that cater to niche segments such
as the self-employed. The company had funded volumes in excess of $8 billion
in fiscal year 2005. Mortgage Intelligence is a GMAC company. For more
information, visit: www.mortgageintelligence.ca.

    About GMAC Residential Funding of Canada Limited

    Founded in 2002, GMAC Residential Funding of Canada (RFC) has had
mortgage originations in excess of $3.5 billion, with $2.9 billion currently
under administration. The company offers a wide variety of conventional,
sub-prime and other mortgages. The company has issued over $1 billion of
securities to the Canadian market since its arrival in 2002. GMAC RFC is an
independent subsidiary of Residential Capital Corporation
(www.rescapholdings.com). For more information, visit: www.gmacresidential.ca.

    i secure(R) is a registered trademark of Mortgage Intelligence Inc.





For further information:

For further information: Charlie Robson, NATIONAL Public Relations,
(416) 848-1456, crobson@national.ca; Dawn Erceg, Director of Marketing, GMAC
RFC and Mortgage Intelligence Inc., (416) 234-3170

Organization Profile

MORTGAGE INTELLIGENCE INC.

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GMAC RESIDENTIAL FUNDING OF CANADA LIMITED

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