Mortgages

Variable and Fixed Rate Mortgages

TECU offers both variable and fixed rate mortgages (1 year open, 1 year closed 2,3,4,5, closed). You can start by choosing the term you want (variable or a fixed rate). And we’ll give you a rate you’ll love! You can also take advantage of our prepayment options (up to 20% per year). This can take years off of the length of your mortgage and save you thousands of dollars.

Top Up / Refinance

You can increase your existing mortgage or apply for a new mortgage if your home is free and clear. This can save you money by allowing you to consolidate any credit cards or loans at a much lower interest rate and lower your monthly payments.

Bridge Mortgages

Bridge financing is available when the closing date of the property purchased by a member occurs before the closing date of the property sold by the same member. The maximum term for a bridge mortgage is 120 days. The terms and conditions of the mortgage shall be subject to the terms and conditions of the Credit Union’s variable mortgage product. No payments of principal or interest are required on the bridge mortgage loan until the closing date for the sale of the member’s residential property.

Flexible Downpayment

Members can now take advantage of more flexible down payment options through CMHC which will allow you to obtain a property with as little as 5% down. This will help members who have little savings to purchase their dream home. Ask our mortgage professional for more details.

CMHC Energy Efficient

CMHC Energy EfficientWhen you purchase a home built by a recognized energy efficient builder, you can save. Homes built under these programs qualify for a 10 per cent premium refund and extended amortization periods without a premium surcharge when CMHC Mortgage Loan Insurance is used to finance their purchase or construction. Also, any home improvements that improve the energy efficiency rating of the home, is also eligible for a 10% CMHC premium refund. Please contact TECU's Mortgage department for more details.

Home Equity Line of Credit

TECU MERITline™ enables members to use the equity of their home for investment purposes or for any number of uses. MERITline™ works like a regular Line of Credit, where members have the option to pay interest only when and if you actually use it. If you don't use it, you pay no interest.
 

Friends With Benefits Mortgage

The TECU Friends With Benefits mortgage is a perfect option for many members in this hot real estate market. With rising real estate costs keeping some people out of the game TECU members can now team up with a friend or family member to purchase a property. You can have up to 4 people on title to help ease the heavy constraints that new regulations have added to the qualifying process. If you think this may be something you are interested in why not give us a call and arrange to discuss your options with an experienced lender. Some conditions apply, must have a 20% combined down payment.

 

A quick note about TECU Mortgages and why you need to do your research.

With mortgage rates hitting new lows in the last few weeks, The Energy CU wanted to make sure that all of our members understand that when you are comparing mortgages, you need to look at more than just rates. When you look at mortgages you must realize that longer maximum amortization periods could mean lower payments (but higher total interest costs). Other things to consider are prepayment options, what the prepayment penalties are, and if the mortgage is assumable.

Often, people feel they don't need these extra bells and whistles, but you might! You could lose your job, come into some money or rates could fall even further. Keeping a flexible mortgage can be vital if you are looking to save money.

Some institutions only allow you to get out of the mortgage if you sell the property. If you want to change lenders in a few years but not sell the property, you may be out of luck. Most mortgages allow you to get out of a mortgage if you pay a prepayment penalty regardless if you are selling or just wanting to go elsewhere. Those penalties can differ so make sure you know what the charges are, penalties can be steep especially early in the mortgage term. One common way to calculate the penalty is by using the financial institution’s posted rates, less the initial discount you received and the current posted rate. They look at the rate at the time of the mortgage (including any discounts received) and the posted rate of the day (less the discount received). The difference between the two is charged for the remaining term of the mortgage.

According to some mortgage specialists this can amount to $15,000-$35,000. Some other institutions use another method that some believe is fairer to borrowers. Instead of using the posted rates less the discount, they look at the actual rates. The penalty would then be three months interest and would likely be much less than the $15,000 that might be otherwise payable.

Lump sum payments are also important. Most mortgages allow annual payments of between 15 and 20 per cent of the principle. Most mortgages also allow you to increase your monthly payments by a certain amount, so you can pay off the mortgage sooner and with less interest. Others allow you to miss a payment, which may come in handy if you go on strike or lose your job.

Another question to ask is if you can take your mortgage with you. Some banks only allow you to port the exact amount you still owe so any upgrade will have to be financed by a separate mortgage. Others allow you to blend and extend - add to a mortgage and blend the new rate with the old one. There are a lot of things to look at to see if a mortgage is right for you. You want as much flexibility as you can get.

If you have any questions about mortgages or travelling down the path to home ownership please give our offices a call at 416-238-5606. Please refer to the Credit Union’s Service Charges and Fees to determine the fees associated with a Credit Union Mortgage. We can help guide you to a solution that makes the most sense for you!

With excerpts Fiona Anderson from the Vancouver Sun.

If you have any questions please give our Lending Department a call at 416-238-5606.

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