29 Apr

Credit Unions

General

Posted by: Nick Kaaki

What’s the Deal With Credit Unions?

There seems to be some misconceptions about credit unions and what their uses are. This is unfortunate because there are so many reasons to use a credit union for your mortgage. They have very competitive rates – sometimes better than the big banks, outstanding conditions, and they might just have the perfect mortgage for your situation. But for some reason – maybe just a lack of public knowledge – people shy away from credit unions when it comes to financing their mortgage. Well it’s a good thing you have a mortgage broker to show you all your options because by overlooking credit unions you could be missing out on the perfect mortgage for you. Keep scrolling to learn more…

Here are just a few of the reasons you might consider using a credit union:

1 – You are building a new home

  • Credit unions have different regulations on how “draws” are set up which make it easier to get funding throughout the different stages of building. This can make the immense process of building a home from the ground up much easier.

2 – You are purchasing a property with acreage

  • Traditional banks can be very picky about homes and property with acreage attached to them – credit unions are much more obliging when it comes to this kind of property.

3 – You are buying in a rural area

  • Traditional banks can also be very picky about WHERE your home is. Basically, they are worried about getting their investment back should you default on your mortgage. We must remember that banks and lenders are INVESTING in your mortgage to a certain degree. because of this they have a lot of fears about smaller communities that they think might be supported by a couple of employer. The way they might look at it is, if that employer leaves town and everyone else follows the value of their investment drops significantly. Of course the reality of the situation can be somewhat different and this is where we can set you up with a credit union who understands those differences.

4 – Listen up because this is the big one – you are worried about the new stress test rules.

  • That’s right, credit unions have different rules when it comes to stress testing as well. OFSI – the government agency that wrote B-20, introducing the new stress test regulations, is a federal agency – they do not regulate credit unions.

If any of these scenarios describe you call me and let’s talk about how we can get you set up with a mortgage through a credit union.

For more info about credit unions check out this link:

Credit Unions – An Alternative Lender