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Home Buying: Making the Right Decisions for You

Mortgages

With a little help from YNCU, we can make that major purchase easier with a variety of lending options.
 
Owning a Home
There’s no place like home, but there are plenty of ways to pay for it. Whether you want to pay for your home sooner, or need more manageable payments today, we have the flexible mortgage options designed to make owning your home easier.
 
Some key terms you should understand:
 
Fixed Rate Mortgage
A fixed rate mortgage carries a set interest rate for a specific period of time. Your rate and payment (principal and interest) remain the same throughout the term, regardless of what happens to interest rates in the market. If market rates increase - good for you! (Your rate won't change.) This is the right mortgage for you if worrying about money keeps you up at night.
 
Variable Rate Mortgage
A variable rate mortgage has a floating interest rate that changes if the prime lending rate changes during the term of your mortgage. Your payment remains the same throughout the term, but the proportion applied to interest versus principal will vary. If rates decrease -- good for you! However, when rates increase, less of your payment goes toward principal, and the amortization period may be impacted. You need to be comfortable with this kind of variability.
 
Open Mortgage
Allows you to pre-pay as much of your mortgage balance as you wish without any penalty, potentially saving thousands of dollars in interest over the life of your mortgage. You may pay a premium for this kind of contract, because there is greater risk for your Lender.
 
Closed Mortgage
A mortgage is a contract between you and your Lender. You’ll often get a lower rate on a closed mortgage because you agree to maintain it for the duration of the contract, meaning there is less risk for your Lender. Ask about pre-payment privileges to help you pay your mortgage sooner.

Shielded Rate Closed Mortgage
Our 5-year Shielded Rate Mortgage allows you to take advantage of low interest rates, but also protects you when rates begin to rise. Your rate will never exceed the predetermined ceiling rate.
 
CashBack Mortgage
What could you do with a few thousand dollars when you move? We have a mortgage that pays you! This kind of mortgage is usually suited to first-time buyers.
 
Flexible payment options and Extra payment privileges
Want to build equity or be mortgage-free sooner? Making more frequent payments can substantially reduce the cost and life of your mortgage. You have the option of making weekly, bi-weekly, semi-monthly, monthly, accelerated weekly or accelerated bi-weekly payments that can be set up to coordinate with your pay period.
 
Pay off your mortgage sooner with one of our extra payment options, available each anniversary year:
  • Increase Your Payment Option: You may increase the amount of your regular mortgage payment by up to 20% once in each anniversary year. The increased payment amount will go directly toward your principal, paying off your mortgage faster. For example: If your mortgage payment is $1,000 per month, you can increase it up to $1,200 ($1,000 x 20%).
  • Annual Lump Sum Payment Option: You may make non-cumulative lump sum payments up to 20% of the original principal balance of your mortgage. For example: If the original principal was $150,000, you can make up to $30,000 ($150,000 x 20%) in extra payments throughout a 12-month period in combination with any of the following payment options:
  • Double-Up Payments: You may double-up your payments on any regular payment date and make as many double-up payments as you like, as long as the payment is made on a regularly scheduled payment date. This surplus is applied directly against the principal balance of your mortgage. For example: If your monthly mortgage payment is $1,000 you can increase your payment up to $2,000 ($1,000 x 2) on any regularly scheduled payment date.
  • Additional Regular Payments: You may make additional payments up to the amount of any regular payment, as long as the payment is made on a regularly scheduled payment date. A minimum amount of $100 is required.

Other Home-Buying Features

Pre-Approvals
Apply before you buy - your pre-approved mortgage will guarantee your rate for up to 90 days (up to 150 days on new construction); you’ll know how much you can afford and what your payments will be. If rates should decline during this period, we’ll give you the lower rate.

Transfers
Well make moving your mortgage to Your Neighbourhood Credit Union easy, and you can also take advantage of our CashBack option.

Refinancing
We want you to have the best financial foundation possible. If we can consolidate debt, make your payments more manageable, or free up equity you’ve built in your home, talk to us!

Mortgage Insurance
Mortgage life insurance is an economical safeguard that gives you peace of mind. You can also choose to add disability, critical illness and job loss coverage; unlike coverage you may have through work, benefits are tax-free. Applying is easy when you’re setting up your mortgage, just ask your Loans Specialist for details.

Why consider credit insurance?
If you already have a life insurance policy, good for you! You’ve taken important steps to plan for future eventualities. However, life insurance pays out only when you die.  Canadians need credit protection not because they are going to die, but because they are going to live. Credit insurance provides coverage that can make those payments for you if you become ill, injured, or lose your job. If you die, the full amount of your debt will be repaid, meaning any other life insurance policy you may hold will go to your beneficiaries instead of your creditors.

Mortgage and Loan Calculators & Applications

 

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