Types of mortgages
Alterna Bank provides customers with two types of mortgages: fixed-rate and variable-rate. Moreover, customers can apply for open mortgages and closed ones. However, customers can use their mortgages only for home purchases, so if they need to renovate their homes, these mortgages may be inconvenient. In addition, one must consider that Alterna Ban is the direct banking branch of Alterna Savings.
- Fixed rates mortgages. For example, if clients choose a fixed-rate mortgage, they can select a term from 1 to 10 years, and rates would vary between 5,85% (4,69% - special offer) and 7,85%.
- Variable rates mortgages. Variable rates are initially lower than fixed ones. Moreover, clients must consider that the bank only offers two types of variable rates mortgages options: a 3-year term or a 5-year term. Their rates are 6,55% for three years and 5,95% for five years.
- Open mortgages. The bank offers several types of open mortgages: 6-Month Fixed Open with 8,00% rate, 1-Year Fixed Open with 7,05% rate, 1-Year Fixed Open - Second Mortgage with 7,50% rate, and 3-Year Variable Open with 7,15% rate.
- Closed mortgages. The bank provides clients with closed fixed mortgages ranging from 6 months to 10 years with rates of 5,85% - 7,85%; closed variable mortgages for 3 and 5 years and 6,55% and 5,95%. Also, there are special rates closed fixed mortgages varying between 1 and 5 years with rates between 4,69% and 4,84% and special rates variable mortgages for 3 and 5 years with 4,90% rates.
Finally, the bank offers high ratio mortgages with fixed and variable rates. Fixed-rate mortgages can be taken for 3 and 5 years with 4,39% and 4,49% rates. At the same time, variable rate mortgages can only be taken for five years with a 4,55% rate.
How to apply for an Equitable Bank mortgage?
Applying for the Alterna Bank mortgage is very simple. To start, customers must choose the “Homebuying” section on the bank’s website homepage and click on the “New Mortgage Application” link. Afterward, they will be redirected to the online application form webpage and need to enter the required information.
- My New Mortgage. On this page, customers need to enter the cost of the home they want, the down payment amount, when they buy a home, and answer whether they are an existing client of Alterna.
- More About Me. In that section, customers need to enter estimated mortgage payments, choose a mortgage option, select amortization period; repayment frequency and check whether they fit the bank’s requirements.
- Personal Information. Full name, prefix, postal code, address, city, province. Also, they need to choose how many years they have lived at that address. Moreover, they need to enter their phone number, email address, date of birth, last four digits of SIN, living situation, employment status, and income type and answer several questions.
Besides, customers need to enter details of their home, what they own/owe, and choose the most suitable Alterna Bank option. As soon as the application is completed, they will be connected with the bank’s support group to finalize all the details. Customers can switch their mortgage to Alterna Bank onlinу at fixed or variable rates.
Requirements
Customers need to meet several requirements to qualify for a mortgage by Alterna Bank. For example, customers must be over the age of majority, be Canadian residents or permanent citizens, have not declared bankruptcy for the last seven years, have not been declined credit for the previous six years, have Canadian home address and details handly, have the last four digits of their SIN, have operated their business for at least three years (if self-employed), their co-applicants are their spouses/partners living at the same address and applying for the same products. Also, customers need to provide several required documents such as ID, housing documents, income verification, etc.
Pros and cons
Pros
- Variety of different mortgage types;
- Simple online application;
- The interest rates are relatively low;
- Variable and fixed rates are offered;
- Customers can apply for a mortgage and track the process online;
- Customers can switch their mortgage to Alterna Bank;
- Self-employed customers can be approved;
- Mortgage insurance coverage is offered.
Cons
- Customers can use their mortgages only for home buying;
- Their rate can increase depending on the type of mortgage;
- For some mortgages, terms are very short;
- There are no mortgage solutions for business people.
How to make a payment?
Customers can adjust their repayment schedule according to their needs. For example, the bank offers customers to repay their mortgages monthly, semi-monthly, bi-weekly, and weekly. They can set up automatic withdrawals or make payments through the bank’s online portal or mobile application.