The following types of mortgage loans are available:

• 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.
  
• 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 from 5% to 19% down, the Credit Union offers mortgages that are insured by the Canada Mortgage and Housing Corporation or GENWORTH. 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.

As of February 2016 the federal government has boosted the minimum down payment for higher-priced homes in Canada.

• The minimum down payment for new insured mortgages increased from 5% to 10% for the portion of the house price between $500,000 and $1 million.
  
• Buyers can still put down 5% on the first $500,000 of a home purchase.
  
• Homes that cost more than $1 million still require a 20% down payment.
  

Example: When you want to buy a $750,000 home, you'll need to have a minimum down payment of $50,000, which is what you get when you add 5% of $500,000 and 10% of the remaining $250,000.

• Our Credit Union offers High-Ratio Mortgages insured by CMHC or GENWORTH Canada, up to 95% of the property value (minimum down payment of 5% to 19% is required).
  
• With conventional mortgage minimum down payment of 20% is required.Normally, the minimum down payment must come from your own funds. You may be eligible for other loans to help you come up with the down payment. However, it is always better to save for a down payment to minimize your debts.
  
• You may be able to use funds from your Registered Retirement Savings Plan (RRSP) for your down payment with the Home Buyers' Plan (HBP). This Plan allows you to borrow a maximum of $35,000 from your RRSP to buy your first home. You do not have to pay tax on the money you withdraw to use as part (or all) of your down payment, nor do you have to pay interest on the money while it is outside your plan.

Additional information about mortgages, Home Buyers' Plan, and our special offers can be found at any Credit Union location. We encourage you to book an appointment with a Branch Manager or a Loan Officer or call our Mobile Financial Advisors, to analyze and choose which mortgage option will best suit your individual needs.

How can I obtain a loan?

We can help you to obtain a loan at every Credit Union office or contact our Mobile Financial Advisors. 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.

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).

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.

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.

All personal and mortgage loans may be insured against the borrower's disability or death up to a specified amount.