Buying a home might be one of the most significant purchases over a lifetime and a big investment. So the way you finance your home will undoubtedly affect your lifestyle and savings for many years to come. First Nations Bank of Canada pledges to simplify your mortgage rate-hunting process.
First Nations Bank offers on- and off-reserve home financing. The terms range from 1 to 5 years. Moreover, First Nations Bank has flexible terms and payment options that may well meet your requirements.
Types of the First Nations Bank mortgages
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Closed fixed-rate mortgages. A closed fixed-rate mortgage is a good option for clients who prefer stable payments throughout the mortgage term, which can be 1 to 5 years. The interest rates range from 5.29% to 6.29%, depending on the term. Although closed mortgages involve prepayment restrictions, you can still accelerate your mortgage repayment. Once a year, you can make a lump-sum payment of up to 15% of the principal. In addition, you can increase your regular mortgage payments by up to 100% over the term.
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Closed variable-rate mortgages. With a closed variable-rate mortgage, your interest rate fluctuates with the Prime rate while your payments remain stable. For example, the interest rate for a 5-year closed variable-rate mortgage is 4.70%. If needed, you can switch to a fixed-rate mortgage penalty-free.
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Open fixed-rate mortgages. Open fixed-rate mortgages are available for a 1-year term only at the First Nations Bank of Canada. The interest rate for a 1-year open fixed-rate mortgage is 7.50%. If needed, you can switch to a closed mortgage option without charge. In addition, lump-sum prepayments and early repayment are penalty-free.
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Open variable-rate mortgages. With an open variable-rate mortgage, your interest rate fluctuates with the Prime rate while your payments remain stable. The interest rate for a 5-year open variable-rate mortgage is 8.00%. If needed, you can switch to a fixed-rate mortgage. An open term allows you to make lump-sum prepayments or increase your regular payments at any time, penalty-free. Repaying your mortgage in full early involves the administration fee of $500 for the first year and $250 for the second year.
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First Nation Market Housing Fund Program (FNMHF). Under the First Nation Market Housing Fund Program (FNMHF), FNBC can provide mortgages under favorable conditions. In particular, there are discounts on the FNBC current posted mortgage rates: a 0.75% discount for uninsured 4-5-year fixed-rate mortgages and a 1.00% discount for insured 4-5-year fixed-rate mortgages. You can reach out to the First Nations Bank of Canada customer service at 1-888-454-3622 to check if you qualify for discounted rates under the FNMHF.
How to apply for a First Nations Bank of Canada mortgage
By filling out the form, you can apply for a mortgage online from the First Nations Bank of Canada. When applying, you will need to provide the following information:
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Whether it is a joint application
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Purchase price
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Down payment
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Mortgage amount requested
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The borrowing purpose
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The preferred payment frequency
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The timeframe for purchasing a property
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Your first name
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Your last name
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Your email
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Your phone number
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Your address
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Your residence status
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Your employment information (including your employment status, company name, and job title)
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Your financial information (including your annual income, the estimated value of assets, and estimated liabilities)
You can also apply for a mortgage in person at an FNBC branch near you.
Requirements
To apply for a First Nations Bank of Canada mortgage, you must be a Canadian resident of at least 19 years old. You must not have declared bankruptcy in the last seven years.
Pros and cons
Pros
Here are the advantages of First Nations Bank of Canada mortgages:
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An opportunity to choose between a fixed and variable rate and between a closed and open term
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Competitive interest rates
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Flexible repayment terms
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Options to speed up mortgage repayments
Cons
Still, there are certain disadvantages:
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The early payoff of an open variable-rate mortgage involves an administration fee
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The prime rate is subject to change without prior notice
How to make a First Nations Bank mortgage payment
You can make a mortgage payment in any of the following ways:
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Through online, mobile, or telephone banking
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In person at your local FNBC branch
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At a deposit-taking ATM on THE EXCHANGE® network
