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The Credit Union has the following mortgage options:
Open — Fixed Rate
The rate is fixed for the term chosen, however the “Open” feature allows you to pay off as much
as you want up to a complete payout, at any time, without penalty. Terms for this option are 6 month
and 1 year.
Closed — Fixed Rate
The rate is fixed for the term chosen and is generally lower than an “Open” mortgage. With the
exception of certain prepayment privileges, this type of mortgage cannot be paid down or paid out during
its term without a penalty. Terms for this option are 6 month to 5 years, with 7 and 10 year terms also available.
The 6 month term is also referred to as a 6 month “Convertible” which means that you can convert your
mortgage at any time, prior to maturity, to a longer term without penalty.
Open — Variable Rate
The interest rate is based on Bank Prime with the rate being set on the first of each month. Regardless of rate fluctuations, the payment remains constant for one year. When interest rates fall, more of the monthly payment goes towards paying off the mortgage principal and less toward interest. That means your mortgage gets paid off faster. This type of mortgage has no restrictions on extra payments being made, including complete payout. This variable rate mortgage also gives you the ability to “lock-in” your interest rate by converting to a fixed rate mortgage.
| Contact Us |
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| Lending Services |
Education Centre
519-742-3500 |
TEchTown
Branch 519-772-3050 |
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