Alterna Bank is a subsidiary of Alterna Savings, the second-largest credit union in Ontario. The bank offers customers various financial products and services, from personal loans to financial management. Alterna also offers different types of mortgages. There are financing options for home-buyers with different goals: acquiring a home, renewing, refinancing, or switching their mortgage. First-time home buyers and experienced home hunters can turn to Alterna for help in search of the best financing option.
Alterna Bank provides customers with three types of mortgage products: fixed-rate, variable-rate, and Flexi mortgages, allowing you to split your loan into different rates and terms. In addition, customers can apply for an open mortgage and a closed one.
In addition, customers can use tap into their home's equity to cover home renos, a vehicle purchase, or another significant purchase.
The mortgage rates offered by Alterna Bank seem to be one of the most competitive in Canada, starting from as low as 4.84%. In addition, there are special offers you can see on a user-friendly comprehensible page dedicated to Alterna Savings mortgage rates. If we assume there are no additional fees, the APR (the annual percentage rate) is the same as the interest rate displayed on this page.
Potential home-buyers can talk to an Alterna mortgage advisor today and lock in their rate for 120 days. Feel free to contact the bank's contact centre by calling 1.866.560.0120 if you have questions or doubts about your mortgage or application process.
If you want to get an idea of what your monthly mortgage payment would be, you could use an Alterna mortgage calculator. Enter such values as your mortgage amount or purchase price, mortgage term, your mortgage rate and type, amortization period, and prepayment details. As a result, you will find out your regular payment amount, interest costs, and balance over the term. If monthly payments do not suit your budget, you can adjust your payment frequency and choose a semi-monthly, bi-weekly, accelerated weekly, accelerated bi-weekly, and weekly payment schedule.
Such calculators do not suggest investment advice and should not be considered a commitment by the bank. The results you get should be used for illustrative purposes only.
Types of Alterna bank mortgages
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Fixed-rate mortgages (rates calculated semi-annually). For example, if clients choose a fixed-rate mortgage, they can select a term from 1 to 10 years, and rates would vary between 4.84% (4.69% - special offer) and 8.10%.
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Variable-rate mortgages (rates calculated monthly). A variable-rate mortgage typically features a lower interest rate than fixed-rate ones. Variable rates fluctuate with the Alterna prime rate, which at the moment of writing this review was 6.45%. 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.
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Open mortgages. The bank offers several types of open mortgages: 6-Month Fixed Open with an 8.00% rate, 1-Year Fixed Open with a 7.05% rate, 1-Year Fixed Open - Second Mortgage with a 7.50% rate, and 3-Year Variable Open with a 7.15% rate.
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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 3-year and 5-year mortgages at the rate of 6.55% and 5.95%, respectively. Also, there are special rates fixed closed 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.
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Flexi mortgages. With Alterna Bank Flexi mortgages, borrowers can split their home loans into different rates and terms to make their journey toward homeownership more affordable. They can divide their mortgage into as many as six closed or open, variable- or fixed-rate terms. A Flexi mortgage can protect you from rising interest rates and provide you with payment flexibility and refinancing options.
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Multi-ownership mortgage. This mortgage product is for you if you want to embark on a journey toward owning a home with your friends or family. You can pool resources to meet the credit approval criteria.
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 Alterna 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.
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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.
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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.
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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. Once the application is completed, they will be connected with the bank's support group to finalize all the details. Customers can switch their mortgages to Alterna Bank online at fixed or variable rates.
Requirements
All Alterna mortgage applications are subject to credit approval based on Alterna's lending guidelines.
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 in hand, 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
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Variety of different mortgage types;
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Simple online application;
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120-day rate guarantee;
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The interest rates are relatively low;
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Variable and fixed rates are offered;
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Customers can apply for a mortgage and track the process online;
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Customers can switch their mortgage to Alterna Bank;
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Self-employed customers can be approved;
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Flexible payment options (monthly, semi-monthly, weekly, bi-weekly);
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Mortgage insurance coverage is offered.
Cons
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The mortgage rate can increase if you choose the variable rate;
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For some mortgages, terms are very short;
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There are no mortgage solutions for business people.
How to make an Alterna Bank mortgage 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.