Motusbank offers fixed- and variable-rate mortgages, a home equity line of credit, and the possibility to take out a shared mortgage loan. The bank promises competitive rates starting from 5.79%.
Types of motusbank mortgages
Fixed-rate mortgages. With a fixed-rate mortgage, your interest rate doesn't change throughout the entire term. As a result, your regular mortgage payments also remain the same, ensuring financial stability over the term. Motusbank offers fixed-rate mortgages for terms ranging from 6 months to 5 years. The interest rates range from 6.19% to 6.59%, depending on the term. At the moment of writing this review, motusbank offers special rates for a 5-year fixed-rate mortgage — 5.79%. Fixed-rate mortgages from motusbank feature flexible repayment schedules, with an opportunity to skip one mortgage payment per year. You can repay your fixed-rate mortgage on a weekly, bi-weekly, monthly, or semi-monthly basis. In addition, to accelerate your mortgage repayment, you can get the advantage of 20/20 prepayment privileges by either paying down up to 20% of the original principal balance or increasing your monthly payment by up to 20% once a year.
Variable-rate mortgages. A variable-rate mortgage assumes that your interest rate fluctuates with the Motusbank Prime Rate. Still, your mortgage payment amount doesn't change. When the Prime Rate drops, more of your mortgage payment goes to the principal balance and less — to the interest. When the Prime Rate grows, more of your regular payment goes toward paying interest and less — to the principal balance. Variable-rate mortgages are available for a 5-year term only. The interest rates for a 5-year open variable-rate mortgage, 5-year closed variable-rate mortgage, and 5-year high-ratio variable-rate mortgage are 8.45%, 6.50%, and 6.50%, respectively. Variable-rate mortgages feature flexible repayment schedules and a skip-a-payment opportunity that you can use once a year. You can repay your variable-rate mortgage on a weekly, bi-weekly, monthly, or semi-monthly basis. To repay your variable-rate mortgage faster, you can pay down up to 20% of the original principal balance or increase your monthly payment by up to 20% once a year.
Friends and family mortgage. Motusbank offers the friends & family mortgage as a joint mortgage solution for clients who might not qualify for a mortgage on their own. With such a mortgage, several applicants can pool their money to finance the purchase of a larger shared home. You can apply this option to any mortgage from motusbank. Just like all motusbank mortgages, friends & family mortgage features flexible repayment terms, a skip-a-payment feature, and 20/20 prepayment privileges.
How to apply for a motusbank mortgage
Motusbank accepts mortgage applications online. The application process starts with registering an account with motusbank. You can sign in using your login credentials if you already have an account. When registering an account, you will need to specify the following information:
Your title, first name, and last name
Your phone number
Your date of birth
Your address
Your email
After providing these details, you should create a password and re-enter it. To apply for the friends & family mortgage, you must call motusbank at 1 (833) 696-6887.
Requirements
To apply for a motusbank mortgage, you must be a Canadian citizen or permanent resident. Self-employed applicants must have operated their business for at least two years.
When reviewing your mortgage application, motusbank advisors check your credit score and income. So be ready to provide information about your income and financial obligations you have.
Pros and cons
Here are the benefits of motusbank mortgages:
An online application
Flexible repayment schedules
Accelerated mortgage repayment options
An opportunity to skip one mortgage payment per year
Special rates for fixed-rate mortgages
Still, there are certain drawbacks:
Mortgages with a closed term involve prepayment restrictions
The actual rate may involve additional premiums for self-employed applicants, for refinances or amortizations more significant than 25 years, and mortgages in the 2nd position
How to make a Motusbank mortgage payment
You can make a mortgage payment using online, mobile, telephone banking, or at designated ATMs.