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Vancity-MortgageVancity has taken the B.C. rate crown for now with its new Saver’s Mortgage.

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.

The pros:

  • 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 cons:

  • 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.)

Other details:

  • 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

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