If you live in British Columbia we’re lucky enough to have some of the lowest mortgage rates in the country. BC Credit Unions like Coast Capital, G&F, Prospera, Vancity, Westminster Savings and Envision are offering some excellent 5 year fixed rates.
Along with the great rates offered there’s always a catch. What the Credit Unions don’t disclose on their advertisements is the conditions you must meet in order to obtain their best rate or the terms and conditions of the mortgage once you do.
While the low advertised rate might sound great upfront, once you read the terms and conditions it might not sound like such a good deal.
The above was just a few of the additional terms and conditions required by Credit Unions when applying for their “best” rates.
Credit Unions also have a more limited lending area than most other lenders. They typically will only finance properties that are within servicing distance of their branch network and depending on the Credit Union, this can be a small area.
Credit Unions also offer an approved lawyer/Notary list. While the lists accommodate most areas in the Credit Unions servicing area your choice is limited and if the particular solicitor you want to use is not on their list you will have to choose another.
This post was by no means made to discourage people from choosing a Credit Union for their mortgage. In fact I have sent many clients to the lenders above because it “fit” with their personal situation. Many clients also love working with their current financial institution and switching to another for a 5-10 basis point savings isn’t always worth it once you read the fine print.
I just encourage you to look deeper than just the mortgage rate advertised, read the fine print and discuss all your options and more importantly ask your Mortgage Specialist any questions you may have.