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Bank vs Credit Union Lenders

Bank vs Credit Union Lenders. Both banks and Credit Unions are financial institutions that have similar financial offerings. However, what they can offer in terms 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. When determining which mortgage lender to choose. It is important to consider the pros and cons of each type of institution. Banks, mortgage companies, and credit unions all offer different services and rates which should be considered when deciding on the best mortgage choice. Banks are typically larger institutions that provide a wide range of financial products and services, including mortgages.

Bank vs Credit Union Lenders

Because Credit unions are not regulated the federal Office of the Superintendent of Financial Institutions.  Thus, 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. Credit Unions offer mortgage services for Canadians that may be outside the realm of other mortgage lenders. As such, they are exempt from federal mortgage lending rules and regulations, allowing them to provide more flexible qualification and lending options. This greater flexibility does come at a cost though – credit unions typically charge higher interest rates than traditional mortgage lenders.

It is important to consider your unique situation and needs and weight the pros and cons when comparing lenders. Contact Prime Mortgage Works today.

Home Equity

Many people find that one of the easiest and most affordable ways to access money is through the equity that they have accumulated in their home. This is a very popular option, especially when you have an excellent first mortgage in place.

Canadians purchase homes for a variety of reasons. Some want the stability of owning their own home, while others also look at home ownership as an investment vehicle. No matter what the reason, the truth is that home ownership has proven itself to be a good stable investment over time, and one which many Canadians are profiting from.

Putting Your Home Equity to Work For You

While many people have chosen to purchase their first home during these times of lower interest rates, there has also been a large movement to refinance home loans and pull out funds for home improvements, investments, college expenses, and even high interest debt consolidation. Canadians have been borrowing against their home in record numbers, taking out billions of dollars in cash each year.

In years past, many saw their homes as a shelter of safety, yet today, they are more willing to borrow against the cash available in their homes to further their investment portfolios, get out of debt, send their children to university, make improvements to their home, or even boost their RRSP contributions. Where home equity was once sat upon, today it is often used to one’s advantage.

While removing equity from your home can be a good idea, you should do so with caution and fully understand the benefits and possible risks.

The best thing you can do is to consult a licensed mortgage broker professional and financial planner to discuss opportunities to make your home’s equity work for you.