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Mortgage Broker News | 27 Aug 2013, 12:00 AM Agree 0
Credit unions are cashing in on the opportunity to snag business from other lenders in the wake of three big banks and one monoline announcing rate increases last week.
  • Joe Wyman | 27 Aug 2013, 09:56 AM Agree 0
    I hope Brokers will inform the clients
    a) Credit Union mortgages are not Portable out of Ontario. So pay the Penalty.
    b) CU mortgages are closed mortgages . Can be paid off only if property is sold - Arm's length.
    c) some CU won't allow property be rented out during the Term . So job change -out of province - can't port , can't rent. sell and pay penalty.

    don't keep clients in dark . Disclose.
  • Danielle Nielsen | 27 Aug 2013, 10:14 AM Agree 0
    In response to Joe Wyman:
    a) Credit Unions can only lend in the Province in which they have a bond. If the CU is in on Ontario, then they can only lend within Ontario etc. so no you cannot port out of province.
    b) Credit Union mortgages are NOT closed mortgages. They can be paid off in the same way as the banks or monolines.
    c) Credit Unions most definitely allow property to be rented our during the terms, same as banks and monolines.

    So no you can't port out of province, but you CAN rent and you DON'T have to sell.

    I just wanted to clarify as I have been working for Credit Unions for 15 years in Management and I didn't want any misinformation out there.

    Absolutely disclose to your clients :)
  • CU Broker | 27 Aug 2013, 10:25 AM Agree 0
    "CU mortgages are closed mortgages. Can be paid off only if property is sold - Arm's length."

    That is a very general and misleading statement.

    Please name 3 major credit unions that have this policy in Ontario.
  • John Dearin | 27 Aug 2013, 10:29 AM Agree 0
    Local credit union in St. John's NL would not allow a client to refinance even in house, locked in for 5 years only get out on arms length sale. So each CU has different rules.
  • Danielle Nielsen | 27 Aug 2013, 10:40 AM Agree 0
    With all FI's, CU's and monolines included, there are sometimes specials where they offer a very low rate but with strict terms and conditions such as the mortgage being closed.
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