| Personal loans (Click here for Online Personal Loan Application)
Personal loans can be taken for a number of purposes eg. debt consolidation, purchase of furniture, computer equipment, payment of taxes or bills, vacations, family needs, downpayment on a house, to pay off a mortgage or for investment in an RRSP. Granting of a loan requires the submission of a loan application with all the pertinent enclosures and a credit check of the applicant.
Mortgage loans (Click here for Online Mortgage Application)
Every member in good standing can obtain a loan that is secured by a first mortgage up to 75% of the value of the property.
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The following types of mortgage loans are available: |
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fixed rate mortgages bearing interest rates that do not change. They can be open, allowing the borrower to prepay some or all of the outstanding balance at any time. Or they can be closed, offering the prepayment of 15% of the balance on the anniversary of the loan agreement. |
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variable rate mortgages bearing interest rates that will change with money market fluctuations. |
Payments can be made on a monthly, bi-weekly or weekly basis, based on a 25-year amortization schedule. Extension of the mortgages and their registration are done for a fee.
Loans can also be life insured and carry optional disability insurance.
CMHC mortgage loans
For home purchases where the deposit is less than 25% down, the Credit Union offers mortgages that are insured by the Canada Mortgage and Housing Corporation. CMHC mortgages can amount up to 100% of the value of the property.
The insurance premium is approximately 2.5% of the loan amount.
There are additional costs involved as well i.e. application charge and appraisal fee.
Before the loan can be granted, GDS (Gross Debt Service) and TDS (Total Debt Service) ratios must be calculated to establish the applicant's credit worthiness.
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How can I obtain a loan?
Loan applications can be submitted at every office of the Credit Union and online. We can discuss your personal budget, analyze your income and expenses and tailor a loan specific to your needs. Once your application has been approved, credit check done and terms of the loan negotiated, the funds will be available for your use.
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Terms of loans
This section covers time period; interest rate; security; and fees.
1. Time period
Mortgage loans are granted for periods of 6 months to 7 years, based on a 25-year amortization period. Personal and business loans are given for the same periods whereas lines of credit are of a revolving nature. When the term of your mortgage comes due, it can be paid off or further renewed. The renewal agreement will be based on conditions in effect at the time of renewal.
2. Interest rate
The Credit Union sets its own interest rates, which are displayed in each branch. They are calculated and charged on the unpaid balance of the loan. The interest rates may differ depending upon the time period of the loan, its purpose and security.
Payments can be arranged as blended payments (a fixed amount comprising of both principal and interest) or regular payments (a fixed principal amount plus outstanding interest).
3. Security
Security that may be required includes one or more of the following:
a. real estate mortgage,
b. frozen funds on deposit,
c. assignment of wages,
d. guarantors,
e. chattel mortgage,
f. Canada Savings Bonds and other securities.
The adequacy of the type of security offered is evaluated by the Loan Officer.
4. Fees and charges
The granting of a mortgage involves certain fees: appraisal; mortgage amendment; mortgage registration; loan extension. A listing of current fees is available at all Credit Union offices.
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Friendly advice on loan repayment
All loans should be paid regularly according to the terms of the agreement. You can either come personally to the Credit Union office, leave post-dated cheques, arrange for automatic money transfers from other accounts, mail your payments by cheque or Money Order, or make payments through telephone or internet banking.
If, for any reason you are not able to keep your payments up to date, you should immediately notify your Branch Manager. It is your responsibility to come and discuss your situation with the Credit Union. It is probable that the we will be able to help you find a solution. In the event that contractual obligations are not met over a sustained period, legal recourse or other action may be taken.
One of the most important roles played in the loan granting process is that of a guarantor. This person is responsible for making loan payments in the event the borrower fails to do so. Therefore, being a guarantor is a duty that should not be taken lightly.
Likewise, the Assignment of Wages is a very important document as it gives the lender the automatic right to 20% of wages to be directed towards the repayment of a delinquent loan. Both the borrower and the guarantor(s) sign such documents.
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All personal and mortgage loans may be insured against the borrower's disability or death up to a specified amount. This coverage is provided by CUIS which carries group life insurance for Credit Union members.
Additional information can be obtained from our Call Centre at
1-888-558-5506 or any Credit Union branch.
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