Which Credit Union Is Best For Home Loan

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Getting a mortgage is a major financial commitment and can make big changes to your lifestyle. So, taking the time to choose the right mortgage is really important. For most Canadians, the Big 5 Banks are what they will think of first when they consider taking the mortgage plunge – but the big banks are not your only choice.

Below are some essential details about getting a mortgage from one of the Big 5 Banks, or from any other kind of lender.

Best Mortgage Lenders In British Columbia

British Columbia has a robust mortgage market comprised of mortgage brokers, credit unions, Canadas big banks, and of course a small percentage of private and alternative lenders.

British Columbias mortgage market, like many other parts of Canada, also sees aggressive competition from international banks and financial institutions, such as HSBC, as well as Canadas Big 5 banks. CIBC and BMO have tended to dominate the market for higher-end properties, which comprises a large part of the Vancouver and Victoria real estate markets

Mortgage brokers are a third and vital component of British Columbia’s competitive landscape, and they are a major reason why the province has the second-best mortgage rates of any province in the country.

Are Online Credit Union Accounts Different From In

Using your credit union online is similar to using a bank online: You can typically deposit checks, pay bills, review your transactions and transfer money to your other accounts or friends and family. If you live close to one of your credit unions branches, you can get help there, too but being able to transact online is especially handy if youre not near one.

Read Also: Is Student Loan Refinancing Worth It

Rocket Mortgage By Quicken Loans: Nmls#3030

Min. Credit Score

at Rocket Mortgage by Quicken Loans

View details;

Why we like it

Good for: refinance borrowers who want a fully digital home loan experience powered by Quicken Loans.

Pros

• Offers conventional and government-backed refinance mortgages.

• Customized loan recommendations based on refinance goals.

• Offers document and asset retrieval capabilities.

Cons

• If youre a look me in the eye type of customer, youre out of luck.

• Getting a customized interest rate requires a credit check, which can lower your credit score by a few points.

Min. Credit Score

View details;

Why we like it

Good for: refinancers who want a name-brand bank, with offices in more than half the states, that charges lower rates and fees than many other lenders.

Pros

• Fixed- and adjustable-rate refinance options.

• Customized refinance rate quotes available online without providing personal info.

Cons

Min. Credit Score

Good for: homeowners who are looking to refinance conventional, FHA or VA mortgages.

Pros

• Offers the ability to securely upload and digitally sign loan documents.

• Displays detailed sample rates for many of its refinance loan products.

Cons

Min. Credit Score

LenderFi offers conventional loans with as little as 3% down.

View details;

Good for: borrowers who want a completely online experience when buying or refinancing.

Pros

Cons

Min. Credit Score

View details;

Why we like it

Pros

Cons

Pros

Cons

Pros

Basic Requirements To Get Approved For A Loan With A Credit Union

As already mentioned, youll likely need to be a member of a credit union in order to secure a loan with one. The good news is that you may be able to apply for membership and a loan at the same time. But if youre already a member, the process can be progressed a lot quicker.;

In order to get approved for a loan with a credit union, youll need to meet a few requirements, including the following:

Become a member. Again, this will be a requirement to get a loan with a credit union, but you may be able to simultaneously apply for both membership and a loan at the same time.;

Application. Like all other types of loans, those that are supplied by a credit union will start with an application that is to be filled out and submitted to the credit union. Depending on the credit union you are applying with, you may even be able to do this all online.

Supply personal identification. You will need to provide various pieces of information on your application, including identification, such as a social insurance number.;

Employment status. You will need to be employed in order to get approved, and depending on the credit union you deal with, you may be required to have been employed with the same company for a certain amount of time to prove stability in your job.

Income. In order to be able to repay your loan plus interest with no troubles, youll need to show that you have an adequate income that can support your loan payments every billing cycle.;

Also Check: What Is The Commitment Fee On Mortgage Loan

Is The Money In Credit Union Accounts Safe

Yes. Like the Federal Deposit Insurance Corp., which handles banks, the National Credit Union Administration;insures customers deposits in case a credit union fails. All federally chartered credit unions must carry NCUA insurance. It covers credit union members deposit accounts: checking, savings, and money market accounts, as well as certificates of deposit. The NCUA insures up to $250,000 per depositor, per institution, per ownership category. Ownership category refers to account types such as single or joint .

Best Mortgage Lender For Refinancing: Mountain America Federal Credit Union

Mountain America Federal Credit Union is our No. 1 choice for mortgage refinancing in Utah, because it offers the most comprehensive selection of mortgage refinance and home equity loans. Among the 10 largest mortgage lenders by volume in Utah, Mountain America has exhibited the fastest year-over-year growth in terms of total dollars originated over the past five years. This growth seems to be due, in part, to its competitive rates and breadth of offerings.

Mountain America offers an enviable selection of refinancing choices for current homeowners. Whereas many lenders limit your refinancing options to a few fixed loan terms, Mountain America’s unique “Mini Mortgages” allow you to refinance an existing mortgage into five-, seven-, 10- or 12-year terms. These are below the range of what most conventional mortgage lenders are willing to refinance into, and provide borrowers who are approaching the end of their mortgage payments, an opportunity to squeeze more savings out of their home loans.

Borrowers looking to cash out on equity have a choice between five-, seven-, 10 and 12-year home equity loans. The credit union also provides home equity lines of credit with no fees or closing costs for loans approved for under $250,000. Many traditional mortgage lenders are more restrictive when it comes to home equity financing, typically offering terms of only eight or 15 years. These flexible offerings highlight Mountain Americas versatility.

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How Can I Calculate How Much My Ontario Mortgage Payments Would Be

Our Ontario Mortgage Payment Calculator will help you figure out how much youll pay with any rate you find on the site. It only takes a few minutes to use, so give it a try. You can modify the mortgage amount, mortgage term and type, amortization and payment type to see how your mortgage options and payment amount are impacted.

Topbritish Columbia Mortgage Brokers

Because British Columbias population density is predominantly situated in and around the Greater Vancouver and Victoria areas, and in the southern part of the provinces interior, that allows for a greater concentration of mortgage providers in those markets. British Columbia mortgage brokers are often able to offer the lowest mortgage rates on the market. The largest brokerages operating in the province include:

• Dominion Lending Centres
• M3 Mortgage Group .

Some of the top online discount brokers that are licensed in British Columbia include:

• Butler Mortgage
• Spin Mortgage.

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How Does A Credit Union Work

often target specific groups for membership, and you must be part of that group to be eligible. For instance, there are credit unions for firefighters, for people who work at the Pentagon, and for teachers.

But there are also credit unions geared toward residents in their communities. The main point is that its not usually difficult to find a credit union you can join. You just cant choose among all of them the way you can with banks.

How To Get A Mortgage From Meridian

You can get a Meridian mortgage in one of two ways: by contacting the bank directly , or by speaking to a mortgage broker.

The benefit of using a mortgage broker is that they can give you and your finances a personal, expert assessment, as well as a set of recommendations. As well as comparing mortgage rates between multiple lenders a broker can negotiate on your behalf, and may be able to secure a lower interest rate than those that are advertised in public.

Read Also: What Is Fha And Conventional Loan

How To Become A Member Of A Credit Union

Before you apply for a loan with a credit union, membership will be required, as previously noted. In order to become a member, you will need to meet some criteria, including the following:

• Identification. Youll be required to provide certain pieces of ID that are current and not expired, such as your social insurance card, drivers license, passport, or permanent Canadian resident card, for instance.;
• Fee. You may be required to supply a small upfront fee to your credit union that will be put toward investment in shares in order to become a member-owner, which will allow you to vote on issues that affect the credit union and even in the election of the credit unions board of directors.;
• Personalized check. A personal check from a Canadian financial institution will be payable to the credit union that includes your full name, address, and account details.
• A resident of the province. You will need to be a resident of the province that the credit union is located in.
• Age of majority. You must be at least 18 years of age to apply for membership at a credit union.

The application process should not take too long to complete. Once the credit union reviews your membership application, youll be contacted with instructions on how to proceed further.

British Columbia Housing Market

British Columbia is home to some of the highest average home prices in the country, despite experiencing a housing downturn in 2018 and early 2019, which quickly caused a 180 from a sellers market to a buyers market.

In 2019, the average home price was $700,397, down 1.6% from the previous year according to the British Columbia Real Estate Association . B.C. home prices are expected to rise by 4.8% in 2020 to $734,000.

There was a total of 77,349 sales in 2019, a 1.5% decline from 2017, though thats expected to rebound by 10% in 2020 to more than 85,000 sales. Keep in mind that these forecasts were derived prior to the COVID-19 pandemic and are likely to be revised down.

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How Can I Get A Good Mortgage Rate

To secure a low rate, focus on three factors: credit score, debt-to-income ratio, and down payment.

Your score should be at least 620 to get a conventional loan with most lenders, although some require higher. But the higher your score, the better rate you should get. To improve your credit score, focus on making payments on time, paying down debts, and letting your credit age if you aren’t in a rush to buy.

Your debt-to-income ratio is the amount you pay toward debts each month, divided by your gross monthly income. Lenders typically want to see a debt-to-income ratio of 36% or less. To get a lower ratio, you either need to pay down debts or earn more.

You don’t necessarily need a 20% down payment to get a good rate, but the more you save, the better your rate will likely be. If you don’t have much for a down payment right now, it could be worth saving for a few more months, since rates should stay low throughout 2021.

Online Services And Technology

Large banks tend to have more money to spend on technology, and as a result, they are known for adding technical services much more quickly than credit unions.;Mobile banking services are likely to be far more advanced at banks.;If technology and online banking are keys to your choice, make a list of your must-have services and ask for a demonstration of them before opening an account at a bank or credit union.

Potentially Higher Overall Cost

While they often provide great rates for their members, there are occasions when credit unions simply cant compete with larger banks.

For those who are inclined to only shop at credit unions, the biggest downside is that banks will periodically offer sharply lower mortgage rates, says Arzaga. When combined with minimum deposits that will lower the interest rate, the difference can be meaningful.

That makes it important to shop at both credit unions and banks for mortgage rates.

Are The Best Credit Unions Also The Biggest

Not necessarily. Some of the biggest credit unions have similar advantages to banks, including highly rated mobile apps and wide ranges of financial products. But you might get more personalized service at a small, local credit union. And some credit unions;belong to;the CO-OP network, meaning you can;bank at over 5,000 credit union branches across the country and use nearly 30,000 ATMs thats a larger ATM network than many banks have.

Dont count out your local credit union when searching for a financial institution.

How Can Someone Decide Between A Conventional Mortgage Vs A Government

Anthony Park, author:

‘It really depends on if you qualify. If you do qualify for FHA or VA mortgages, those are no-brainers. just because the terms are so favorable. If you don’t qualify, you fall back by default onto conventional mortgages.”

“The most common government loan that’s widely available to almost everyone is the FHA loan. There’s a couple of reasons why somebody would go with FHA instead of conventional one. Their credit is a little on the crummy side, let’s say below 700. You can get conventional with down to a 620 score, but the mortgage insurance gets really expensive. FHA doesn’t discriminate no matter how perfect or crappy your credit is, the mortgage insurance is the same.”

What Is Mortgage Refinancing

Mortgage refinancing occurs when a homeowner applies to a lender for a new mortgage on their existing property. At the closing for the refinance, the new lender pays off the debt owed to the former lender. The homeowner now has a new mortgage note with the new lender.

There are two types of mortgage refinances. One is called cash-out, the other rate-and-term. If the homeowner qualifies for a cash-out refinance, the new lender is giving them cash back at their closing based on the equity they had already built up in the former mortgage balance. A rate-and-term refinance allows the homeowner to get into a new mortgage that has a lower rate and a new term length compared to their previous contract.

Pros Of Getting A Credit Union Mortgage

More and more people are learning that they can find the best deal and the best service in town at a credit union, says Curt Long, chief economist and vice president of research for the National Association of Federally-Insured Credit Unions .

The benefits of getting your mortgage through a credit union include:

Best Mortgage Lender For Poor Credit: Academy Mortgage Corp

Academy Mortgage Corp. ranks as our top Utah mortgage lender for homebuyers with bad credit, as it’s the second largest originator of FHA loans in the state. Youre more likely to find loan officers experienced in FHA lending at Academy Mortgage than any other home loan company in Utah, with the possible exception of SecurityNational Mortgage Co. . We also found that Academy Mortgage was the top originator of FHA loans in Box Elder, Davis and Weber counties in the last five years overall.

When comparing the two top FHA lenders side by side, we found that Academy Mortgage offered more resources and originated more mortgage loans overall than SecurityNational. Over the past five years, Academy Mortgage Corp. held more than twice the market share of SecurityNational in overall mortgage lending. The information provided on Academy Mortgage’s website was also more comprehensive and featured links to helpful informational articles written by the U.S. Department of Housing and Urban Development. SecurityNational’s website, by comparison, was sparse and required you to contact a loan officer for information. First-time borrowers, unfamiliar with the FHA program, may be better served by Academy Mortgage.

Access Credit Union Mortgage Rates

Access Credit Unionoffers mortgages only to residents of Manitoba through their large number of branches in Winnipeg and central Manitoba. Alongside traditional mortgages, Access Credit Union also offershome renovation loans, vacation property mortgages, and builder’s mortgages.

Final Thoughts On Where To Shop For A Mortgage

Banks have served us well for a long time, but credit unions, while not as prominent, have hardly been lurking in the shadows. This year, their membership topped more than 100 million.

So if youre already a member of one, and your credit union offers home loans, as about 80 percent do, why wouldnt you at least give them a crack at your business? After all, youre not just a customer of that institution; youre a member-owner.

At the same time, if youre not a member, its fairly easy to become one.

By the same token, if youre a rate watcher, you can start by visiting the MyBankTracker’s mortgage page.

If you find a competitive rate, contact that institution. Ask the bank lender how it performs based on the criteria, such as fees and products, listed above.

If you like what you hear, schedule an appointment. Be honest with the lender and let the bank rep know youre just shopping at this point. Tell them to wow you.

Let the different institutions make their case. Armed with the knowledge you now have, you know what to look for. Who is the most professional? With whom do you want to have a relationship that could last five, 10 or even 30 years?

Talk it out, compare and youll know where to go!