There are different types of mortgages at Vancity.
- Mixer mortgage
Mixer mortgages allow for sharing homeownership costs among two or more individuals, thereby increasing your purchasing power. These mortgages provide competitive interest rates and flexible repayment terms. With a mixer mortgage, each co-owner has life insurance coverage.
- Open-term mortgage
Open-term mortgages allow you to pay ahead of schedule with no prepayment penalty. Vancity open-term mortgages are available for terms of six months to five years, at both fixed and variable rates. The rates for open-term mortgages range from 6.64% to 8.25% depending on the term.
- Closed-term fixed-rate mortgage
A closed-term fixed-rate mortgage is a good option for borrowers who prefer stability in their mortgage payments. With a closed-term mortgage, you can borrow up to $1 million at a 4.74% interest rate for a 5-year term and make a 5% down payment. Once a year, you can prepay up to 20% of your original mortgage amount or increase your payments by up to 20%. The maximum amortization period with a closed-term mortgage is 25 years.
- Fixed-term mortgage
With a fixed-term mortgage, you will make regular payments over the long term. Your interest rate will be lower than the interest rate with an open-term mortgage. Fixed-term mortgages are available for terms of six months to five years. Once a year, you can prepay up to 20% of your original mortgage amount or increase your payments by up to 20%. The maximum amortization period with a fixed-term mortgage is 30 years. The rates for fixed-term mortgages range from 5.14% to 6.75% depending on the term.
- Fixed-rate mortgage
With a fixed-rate mortgage, you can get financing of up to 95% of your home’s value. Fixed-rate mortgages are available with both open and fixed terms. Getting a 3, 4, 5, 7, or 10-year fixed-term mortgage can bring you cash back in an amount of up to 5% of the mortgage principal.
- Homeprime mortgage
A Homeprime mortgage provides a variable interest rate that fluctuates with the Vancity Homeprime rate. This mortgage is available with both open and fixed terms. The interest rate for a 5-year Homeprime fixed-term mortgage is 4.45%, and for a 5-year Homeprime open-term mortgage — 8.00%. At the moment of writing this review, the Vancity Homeprime Rate is 4.70%. The maximum amortization period with a Homeprime mortgage is 30 years.
- Construction mortgage
With a construction mortgage, you can get financing for building your own home. During the first 18 months of construction, you will pay interest only. If the home you are building is going to be your principal residence, fixed-term mortgage rates for a 3-year term and longer will apply. If you are building an investment property, the terms of a 5-year Homeprime open-term mortgage will apply.
- Home renovation options
If you are ready to use your home equity as collateral, a Creditline mortgage might be a good option for you. With a Creditline mortgage, you can get financing of $5,000 and more at a competitive variable rate equal to Vancity Prime plus Increment. For smaller renovation projects, personal loans or lines of credit can work better.
- Laneway mortgage
A laneway mortgage is a good option for clients willing to build a laneway home on their property. With a laneway mortgage, you can get a preferred rate on a 5-year, 7-year, or 10-year fixed-rate mortgage, or on a 5-year Homeprime fixed-term mortgage.
How to apply for a Vancity mortgage?
To apply for a Vancity mortgage, you must book an appointment with a Vancity advisor. Click “Book an appointment” on the mortgage description page, select the mortgage you want to apply for, and choose the date and time that works best for you. Mortgage application meetings are only available by phone call.
Requirements
To apply for a Vancity mortgage, you must be a British Columbia resident of at least 19 years old. When reviewing your mortgage application, Vancity financial experts will evaluate your credit report and assess your creditworthiness.
Pros and cons
Vancity mortgages have both pros and cons. Let’s outline the pros first:
- A variety of mortgage solutions for different financial situations
- The availability of specialized mortgage options like mixer and laneway mortgages
- Cash back earning opportunities included in a fixed-rate mortgage
Still, there are certain cons:
- Prepayment penalties for fixed-term and closed-term mortgages
- The lack of online application
How to make a payment?
There are several ways to make a mortgage payment:
- Transferring funds directly to your mortgage through the online banking account or the mobile app
- Transferring funds to your loan over the phone with Vancity staff or Member Service Center staff
- Paying in person at your local Vancity branch