Types of Laurentian Bank mortgages
- Variable-rate mortgage. A variable-rate mortgage involves an interest rate changing based on the fluctuations of the prime rate. The term can be 3 or 5 years, and the payment amounts can be either fixed or variable (based on the prime rate’s fluctuations). To diminish global costs, there is a prepayment opportunity applied directly to the capital: once a year, you can make additional lump-sum payments of up to 15% of the loan amount. Flexible payment schedules allow you to pay on a monthly, month-end, biweekly, or weekly basis.
- A mortgage with cash back. A mortgage with cashback from Laurentian Bank can be an attractive option for clients with a tight budget and cash needs. With this 5-year fixed-rate mortgage, you can get a cashback of up to 5% of the borrowed amount. The interest rate will be 6.140% in this case. To speed up your mortgage repayment, once a year, you can either make a principal payment of up to 15% of the initial loan amount or increase your regular payments by up to 15%. As to payment frequency, you can stick to monthly, month-end, biweekly, or weekly payments.
- Fixed-rate mortgage. If you prefer long-term stability when paying off your financial obligations, consider a fixed-rate mortgage from Laurentian Bank. A fixed-rate mortgage is a closed mortgage, so you can benefit from lower rates than with an open mortgage, while restrictions on prepayment amounts apply. Still, there is an opportunity to speed up your mortgage repayment by either making a principal payment of up to 15% of the initial loan amount or increasing your regular payments by up to 15% once a year. You can pay on a monthly, month-end, biweekly, or weekly basis. The interest rates for fixed-rate mortgages range from 5.390% (a promotional rate) to 7.050%, depending on the term.
- Equity line of credit. With an equity line of credit, you can leverage your property to get access to financing of $10,000 and more at a competitive variable interest rate. The posted rate for an equity line of credit is 4.950%. Just with any other lines of credit, interest applies on an equity line of credit only when you use it. The repayment terms are flexible — you can pay interest only, a percentage of the line of credit balance, or a fixed sum each month.
- Retirement line of credit. Clients who have their residence fully or largely paid off can apply for a Retirement Line of Credit. With this line of credit, you can get access to financing equal to up to 50% of your property’s market value and still remain the homeowner. Flexible repayment terms allow you to pay at your own pace, making either interest payments only, paying a percentage of the balance due, making fixed payments, or repaying your balance in full at any time. Paying off your line of credit results in renewing your available credit, with no need to re-apply for it.
How to apply for a Laurentian Bank mortgage?
To start your mortgage application process, you need to book an appointment with one of Laurentian Bank’s advisors by filling in the form on the website. Once you do, expect an advisor to contact you in the next couple of days.
Requirements
Applying for a mortgage from Laurentian Bank requires you to be a Canadian citizen at the age of the majority in your province. When reviewing your application, Laurentian Bank’s financial advisors will verify your income and credit score. So, having a steady source of income and a good credit score will increase your chances of getting favorable mortgage loan conditions.
To qualify for a Retirement Line of credit, you must be a homeowner whose equity on the property doesn’t exceed 25% of the current property’s market value.
Pros and cons
Here are the benefits of mortgage solutions from Laurentian Bank:
- A variety of financing options to choose from
- Fixed-rate mortgages feature a guaranteed rate for up to 120 days upon pre-approval
- Opportunities to accelerate loan repayment with closed mortgages
The potential drawbacks include:
- Restrictions on allowed prepayment amount and schedule with closed mortgages
- Minimum borrowing amount requirement of $10,000 with an equity line of credit
- Availability of a Retirement Line of Credit only for clients whose equity on the property doesn’t exceed 25% of the current property’s market
How to make a payment?
You can make a mortgage payment in any of the following ways:
- Through LBCDirect
- Through the Laurentian Bank mobile app
- At a Laurentian Bank ATM
- At a Laurentian Bank branch near you
- By phone
