The Saver’s Mortgage is a 5-year fixed with an ultra-low rate (3.64% currently) and a twist. You need to:
- Save a minimum of $50 a month in a non-registered Vancity savings account
- Get two other eligible products from Vancity (Cross-selling lets Vancity offer what is the lowest advertised rate in Canada—that we know of anyway.)
“Eligible products” include non-registered investment accounts, term deposits, payroll deposits, Vancity’s VISA, credit lines, loans and mortgage insurance.
“Canadians aren’t saving as much as they need to be and this mortgage is a way Vancity can help put money back in their pockets,” says Sachin Varma, Vancity’s Product Manager.
The Saver’s Mortgage promotion runs until June 30.
- Rock-bottom rate
- Forced savings (Automated deposits let you easily save for whatever you like, even property taxes.)
- No IRD penalty after month 36 (Customers love this feature since most people break their 5-year mortgage within 3-4 years.)
- Rebate on interest via dividends (Vancity mortgagors got rebated 1.46% of their mortgage interest last year.)
- Readvanceability (You can withdraw equity in the future without paying legal fees.)
- Double-up payment privileges
- The need for products you may not want
- Lump-sum pre-payments can only be made once a year
- Collateral registration (This means you’ll likely pay legal fees to switch lenders at maturity. Although, that is common with credit unions and readvanceable mortgages.)
- Minimum Mortgage: $250,000
- Term: 5-year fixed only
- Rate Guarantee: 60 days
- Property Type: Owner-occupied primary residences (Rentals are permitted, but only for current Vancity home mortgage clients, or those who have a clear-title residence. 75% LTV max on rentals with 90% rental offset.)
- Lump-sum Pre-payment Option: 20% once yearly
- Payment Increase Option: 20% annually
The Saver’s Mortgage is available through approved Vancity brokers, Vancity branches and Vancity mortgage specialists.
Vancity is Canada’s biggest credit union with 400,000+ members. It lends in greater Vancouver (Pemberton to Hope, including Bowen Island) and greater Victoria, B.C.
Brokers: A buydown is required on this product. Given the razor-thin spread, that was the only way Vancity’s treasury department could offer it through the broker channel.
Rob McLister, CMT