Types of Equitable Bank mortgages
Equitable Bank offers customers several types of mortgages that cater to various needs such as home purchases, renewals, and refinancing. Basically, Equitable Bank provides three types of mortgages: customizable mortgages, EQB Evolution Suite, and reverse mortgages. Besides, the bank provides customers with home equity lines of credit.
Customizable mortgages
- Fixed rates mortgages. If customers want to avoid the future risk of interest rate fluctuations and keep the rate the same from the beginning of the term up to the end, they can choose the mortgage with fixed interest. Even if the rates of the bank increase, customers will have the same rate as they had while issuing the mortgage. Out of all the fixed EQ Bank mortgage rates, the most popular product is the 5-year fixed rate. This is because people value the convenience of not needing to renew their mortgage for five years. For example, if customers take a mortgage with a 5-year term and 25-year amortization, they will have a 4,49% interest rate. Customers can use the borrowed money as they want; even self-employed clients can be approved.
- Variable rates mortgages. By taking such a mortgage, customers must consider that their rate will change according to the bank’s prime rates. If the interest rate rises and they owe more in interest payments, they will pay less towards their principal mortgage balance, which means they will pay off their mortgage slower. However, if the bank’s mortgage rate falls, they will pay less of their monthly payment towards interest and more towards the principal amount, becoming mortgage-free sooner. This option will suit those sure that the bank’s rate will decrease in the future, letting them capitalize with a lower EQ Bank mortgage rate.
- Reverse mortgages. This is a specific type of mortgage designed especially for customers who retire and need to access the equity of their homes. The way it works, customers will be provided with tax-free cash upfront and still will be able to live in their homes. The amount that customers will receive with a reverse mortgage is based on their age and the current value of their home. Customers have multiple options for getting the loan, with options being both upfront with a single amount or mixed with a large upfront amount with recurring advances. However, there are some requirements to be approved for such a mortgage: customers must be older than 55, live in a major population center in the provinces of BC, Ontario, Quebec, or Alberta, occupy the home as a principal residence, and have all homeowners on the deed be part of the reverse mortgage.
The EQB Evolution Suite
Also, customers can take the mortgage from Equitable Bank under the EQB Evolution Suite program. These are mortgage solutions that will appeal to a wide range of borrowers who may be salaried, salaried with commission, and self-employed individuals looking to purchase a residential property.
Generally, this financial product is designed for customers who need finances for a house purchase. In addition, it will be suitable for investors acquiring rental properties, newcomers to Canada who are buying a home, or customers purchasing a vacation or a second property.
Home equity line of credit
Besides mortgages, Equitable bank provides customers with home equity lines of credit. These tools can help customers access a quick cash flow through their home equity without needing to refinance their bank mortgage. In addition, since their home backs the HELOC, customers will receive a much lower interest rate than if they got a personal loan or unsecured line of credit. Also, they will have no fees for having a zero balance and no processing fees to use their HELOC. There are three ways customers can get an EQ Bank HELOC:
- Combine the existing Equitable bank mortgage with the HELOC;
- Use the HELOC to repay the existing mortgage;
- Apply for the HELOC without having a mortgage.
How to apply for an Equitable Bank mortgage?
Applying for one of the mortgage types by Equitable Bank is pretty simple. First, customers should register on the bank’s online portal myEquitable and get pre-approved. Pre-approval requires providing the bank with several documents such as a photo ID, recent paystubs or other proof of income, bank statements verifying proof of their down payment, proof of any other assets like a car, information about any regular payments they make on things like credit card debt, student loans, car loans, or child support.
Customers will need to fill out the pre-approval application that can be found on Equitable bank’s website. In addition, customers will need to enter:
- Personal information. The name, date of birth, social insurance number, complete address, phone number, email address, marital status, employment status, employer, and gross annual income.
- Co-applicant/guarantor. This section requires the same information as the personal information about the applicant.
- Property information. The property type, complete address, monthly rental income, annual property tax, monthly maintenance fee, and approximate square footage.
- Solicitor information. The solicitor's name, phone number, firm name, and complete address.
- Financial information. All the information about the existing mortgages, assets, value, liabilities, balance, and monthly repayments.
- Financial requirements. In this section, customers must mention what they take a mortgage for purchase or refinance and enter the additional information for any of those options.
Finally, as soon as customers are done with the application, they should enter comments if they have any, sign the form and send it to the bank.
Requirements
To qualify for a mortgage by Equitable bank, customers must meet some requirements in the first place. For example, customers must be at the age of majority for their province, be Canadian citizens, and have a good credit score. Also, the bank will require such documents as photo ID, recent paystubs or other proof of income, bank statements verifying proof of their down payment, proof of any other assets like a car, information about any regular payments they make on things like credit card debt, student loans, car loans, or child support.
Besides, customers will need to mention information about their existing mortgages, employment, property, and annual incomes and provide the bank with the filled application.
However, customers who apply for a reverse mortgage will face other requirements. For example, they must be 55 or older and live in the major urban centers of Ontario, Quebec, British Columbia, or Alberta. In addition, their home is their principal residence (they live there for at least six months of a calendar year), all title holders of the residence apply as joint borrowers (in ON, AB, BC), and the residence is owner-occupied and not a secondary home or cottage, their home is detached, semi-detached, condo, or townhome.
Pros and cons
Pros
- Variety of different mortgage types;
- Customers can use the equity of their home;
- The interest rates are relatively low;
- Customers can apply for a mortgage and track the process online;
- Customers can add a tax portion to their mortgage payments;
- Customers can switch their mortgage to Equitable Bank;
- Self-employed customers can be approved.
Cons
- Customers can’t transfer any of their debt onto their mortgage or access the equity in their property without qualifying for mortgage refinancing;
- Customers have to wait for 3-5 weeks to receive their HELOC funds;
- Customers can’t pay their property taxes on their own and remove the tax portion from their mortgage payments without a specific option;
- Customers’ regular payments may increase depending on the type of mortgage they have chosen;
- When customers change their payment due date or frequency, the first new payment may not cover all of the interest accrued since they made their last payment.
How to make a payment?
Customers can adjust their repayment schedule if they need to. For example, the bank offers customers to repay their mortgages bi-monthly or monthly.
Also, customers can change the repayment frequency, but they should note that they will avoid a fee for doing that only if they make such a request within the first month.
They can request the payment due date or payment frequency change in their personal account online using the myEquitable portal. In addition, payments can be managed through the same portal.
