This section covers time period; interest rate; security; and fees.
1. Time period
Mortgage loans are granted for periods of 6 months to 5 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).
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,
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.