Bank vs Credit Union Lenders

Both banks and Credit Unions are financial institutions that have similar financial offerings; however what they can offer in term s of mortgages are quite different. Banks are publicly listed and regulated by the federal government. Credit Unions on the other hand, are locally based organizations regulated by provincial government.

Because Credit unions are not regulated the federal Office of the Superintendent of Financial Institutions, they are often not subject to the mortgage lending rules. Of course, Credit Unions do not come without any downside; as a result of their provincially based operations, they do not offer the ability to port a mortgage to a different province. Further, more qualification and lending flexibility may come at a price of higher interest rates.

It is important to consider your unique situation and needs and weight the pros and cons when comparing lenders.