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If you thought mortgage rates could not go any lower, you were wrong.

Investors Group is rocking the mortgage world with what appears to be the deepest discount in Canadian history on a floating rate loan, offering a deal that takes an effective mortgage rate down to 1.99%.

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The company is now offering 101 basis points or 1.01 percentage points off its prime rate of 3% for a variable rate mortgage. Consumers can get the deal for a 36-month term which is shorter than the length offered by some of the major banks on the deep discounted five-year fixed rate mortgage which has dropped to around 3% — a controversial level that once drew the wrath of the department of finance.

We haven’t seen a rate like this

“We haven’t seen a rate like this from a lender,” said Rob McLister, founder of www.ratespy.com., referring to the steep discount.

The offer from Investors Group is not available from brokers and is coming from the company’s own sources, designed to make a major splash in the marketplace.