Coast Capital Savings launched a new product that the company says will give customers greater flexibility and control.
The credit union’s You’re the Boss Mortgage was introduced on Tuesday November 9, and includes one of the highest level of extra payments in Canada, easy access to funds when needed and a new rate option that is supposed to integrate the best features of fixed and variable rates.
“Our research revealed that customers feel their financial lives are being controlled by their long-term mortgage debt and they are highly motivated to get out of this debt,” said Lawrie Ferguson, Coast Capital’s chief marketing officer. “But financial institutions don’t make it easy for them to eliminate their debt, while managing their ongoing financial needs, so our new mortgage product includes flexible payment and withdrawal features designed to place control back in the hands of customers.”
The new product includes the Save and Take Payments feature that allows customers to pay off their mortgages faster without penalty by making prepayments of any amount at any time, up to 30 per cent of the principal of the mortgage annually.
Coast Capital’s research found 40 per cent of mortgage holders in the Lower Mainland and Vancouver Island area set aside funds for emergencies rather than paying down their mortgage, while 47 per cent were unsure about whether to purchase a fixed or variable rate mortgage.