BVCU has a Mortgage to Suit YOUR Needs

We can't wait to help you turn your goals into reality.

Whether you’re buying your first home or your next place, renewing, renovating, refinancing, tapping into your home equity, or on the hunt for an investment property, there are a lot of things to know. The good news is that BVCU knows a lot about mortgages. We have options and information for you, and we will be there with you on every step of your journey alongside you.

Explore our mortgage options, take a look at the mortgage calculator to help figure out what you can afford, and tap into our helpful team to find the plan that suits your personal situation best!

Mortgages Types

What kind of mortgage suits you best? We want to find the best fit for you. Don't feel like you need to come in knowing everything. We are here to help you go through all your details to ultimately provide options that will meet your financial goals.

Choosing your best mortgage option

Everyone loves a low mortgage rate, but your rate isn’t the only consideration when you are financing you home.

The term of your agreement: look ahead.

The rates may be higher when it’s time to renew at the end of your mortgage term, which could mean higher payments. Some people prefer the predictability of locking in a reasonable rate for a longer term, rather than the lowest rate for a shorter term.

Your amortization period: a lower rate today may help you pay down your mortgage sooner. 

 If you can afford to pay more towards your principal each month, you can shorten your mortgage by years.

Flexible terms: a rock-bottom interest rate may be offset by costs or penalties if you move or renegotiate before the end of your term. 

In some cases, more flexible mortgage features can save you money in the long run.

The “cost” of discounts: be aware that special rate offers often come with strict conditions attached. 

Again, flexibility can be a valuable feature in a mortgage.

Helpful Resources

Mortgage Glossary

Mortgages have a vocabulary of their own. We will be there every step of the way to help you navigate, but to give you a head start on understanding, here is a  list of terms for BVCU products to help you on your journey.
Agreement of Purchase and Sales: The legal contract a purchaser and a seller go into. It is recommended that you have your offer prepared by a professional realtor that has the knowledge and experience to satisfactorily protect you with the most suitable clauses and conditions.

Amortization: The amount of time it takes to repay the entire amount of the financing based on fixed payments which covers both principal and interest.

Appraisal: The process of determining the market value of a property by an approved and licensed appraisal company.

Appraised Value: An estimate of the market value of the property.

Assets: What you own or can use to determine your net worth or to secure financing.

Assumption Agreement: A legal document signed by a buyer that requires the buyer to assume responsibility for the obligations of an existing mortgage. If someone assumes your mortgage, make sure that you get a release from the mortgage company to ensure that you are no longer liable for the debt.

BEACON Score: Calculated from a customer’s Equifax credit file and is used to understand a customer’s likelihood to repay. The score uses a mathematical equation that evaluates information on the customer’s credit file compared to information patterns in millions of past credit files. BEACON scores can range from 300 to 850. The higher the score, the lower the risk to creditors. 

Building Permit: A certificate that must be obtained from the municipality by the property owner or contractor before a building can be erected or repaired. It must be posted in a conspicuous place until the job is completed and passed as satisfactory by a municipal building inspector.
Canada Mortgage and Housing Corporation (CMHC): CMHC is a federal Crown corporation that administers the National Housing Act (NHA). Among other services, they also insure mortgages for lenders that are greater than 80% of the purchase price or value of the home. The cost of that insurance is paid for by the borrower and is generally added to the mortgage amount. These mortgages are often referred to as “Hi-Ratio” mortgages.

Chattel Mortgage: Often referred to as Mobile Home Mortgage, this is the funds borrowed to purchase movable personal property.

Closed Mortgage: A mortgage that cannot be prepaid or renegotiated for a set period of time without penalties.
Closing Costs: Costs that are in addition to the purchase price of a property and which are payable on the closing date. Examples include legal fees, land transfer taxes, and disbursements.

Closing Date: The date on which the new owner takes possession of the property and the sale becomes final.

Collateral: An asset, such as term deposit, Canada Savings Bond, or automobile that you offer as security for a loan.

Commitment Letter/Mortgage Approval: Written notification is provided by the mortgage lender to the borrower that approves the advancement of a specified amount of mortgage funds under specified conditions.

Conventional Mortgage: A mortgage up to 80% of the purchase price or the value of the property (where the purchaser has more than 20% down payment). A mortgage exceeding 80% is referred to as a high-ratio mortgage and the lender will require insurance for that mortgage.

Credit Scoring: A system that assesses a borrower on a number of items, assigning points that are used to determine the borrower’s credit worthiness.

Demand Loan: A loan where the balance must be repaid upon request.

Deposit: A sum of money which is deposited in trust by the purchaser on making an offer to purchase. When the offer is accepted by the vendor (seller), the deposit is held in trust by the listing real estate broker, lawyer, or notary until the closing of the sale, at which point it is given to the vendor. If a house does not close because of the purchaser’s failure to comply with the terms set out in the offer, the purchaser forgoes the deposit, and it is given to the vendor as compensation for the breaking of the contract (the offer).

Down Payment: The amount of money required to purchase a home. A down payment can be saved funds, borrowed funds, gifted funds, or combination of all.

Early Renewal: The renegotiation of mortgage term and rate prior to the maturity date. (A prepayment cost would usually be due if the mortgage is closed).

Equity: The difference between the home’s fair market value and the outstanding balance of all liens on the property. The property’s equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates.

Fire Insurance: Property insurance that the mortgage customer must purchase to protect the property against any damages that may be caused by a fire. Customer must ensure that full replacement value is purchased and that if there is any fire damage the lender will be paid first on the loss.

First Mortgage: A debt registered against a property that specifies a lender as the first to be paid on that property.

Fixed-Rate Mortgage: A mortgage for which the interest is set for the term of the mortgage.

Foreclosure: A legal procedure whereby the lender eventually obtains ownership of the property after the borrower has defaulted on payments.

Gross Debt Service Ratio (GDS): It is one of the mathematical calculations used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs and 50% of any maintenance fees, and this sum is then divided by the gross income of the applicants.

Guarantor: A person with an established credit rating and sufficient earnings who guarantees to repay the loan on behalf of the borrower if the borrower does not.

High-Ratio Mortgage: A mortgage that exceeds 80% of the purchase price or appraised value of the property (less than 20% down payment). This type of mortgage must be insured and is the opposite of a conventional mortgage. BVCU partners with CMHC and Genworth to provide high-ratio mortgages to our members.

Holdback: An amount of money required to be withheld by the lender during the construction or renovation of a house to ensure that construction is satisfactorily completed at every stage.

Home Equity Line of Credit (HELOC): A personal line of credit secured against the borrower’s property which allows you to access equity in your home when you need it, and pay interest only on the amount you advance. Once paid back, the HELOC remains available for you to use once again for any future needs, without having to requalify.

Home Insurance: Insurance to cover both your home and its contents in the event of fire, theft, vandalism, etc. (also referred to as property insurance). This is different from mortgage life insurance, which pays the outstanding balance of your mortgage in full if you die.

Home Inspection: The examination of the house by a home inspector selected by the purchaser to determine any issues with the property which if significant enough, could devalue the property and create risk for the potential home owner. A successful home inspection is often included as a condition on the purchase of a home.
Interest: The cost of borrowing; rates are often quoted as an annual rate (APR), and collected based on payment frequency.

Interest Adjustment Date (IAD): The date on which the mortgage term will begin. This date is usually the first day of the month following the closing. The interest cost for those days (from the closing date to the first of the month) is usually paid at closing.

Interest-Only Mortgage: A mortgage on which only the monthly interest cost is paid each month. The full principal remains outstanding.

Interim Financing: Short-term financing to help a buyer bridge the gap between the closing date on the purchase of a new home and the closing date on the sale of the current home.
K: nothing here!

L: nothing here either!

Mortgage: A mortgage is a loan that uses a piece of real estate as a security. Once that loan is paid-off, the lender cancels the mortgage and the real estate becomes 100% property of the mortgagor.

Mortgage Broker: Someone that negotiates with lenders on behalf of a borrower to obtain the best overall mortgage for that borrower’s circumstances.

Mortgage Insurance: If your down payment is less than 20% of the purchase price of the property, the lender is going to require mortgage insurance. The fee is calculated as a percentage of your mortgage.

Mortgagee: The financial institution (BVCU in this case) who is lending the money using a mortgage.

Mortgagor: The person who borrows the money using a mortgage.

Net Worth: The difference between what you own (assets) and what you owe (liabilities) is called your net worth.

Offer to Purchase: A legally binding agreement between you and the person who owns the house you want to buy. It includes the price you are offering, what you expect to be included with the house, and the conditions of sale (your financing arrangements, the closing date, etc.).

Open Mortgage: A mortgage that can be repaid at any time during the term without any penalty. Rates are usually higher with an open mortgage as opposed to a closed mortgage because of the added flexibility on repayment. A good option if you are planning to sell your property or pay-off the mortgage entirely.
PIT: Stands for principal, interest and property tax due on a mortgage. Taxes; means that payments being collected or calculated includes the repayment of the original mortgage balance (principal) + the cost to borrow funds from the credit union (interest) + collection of property taxes (taxes) that are payable to the town/city every year.

Preapproval: A qualifying mortgage amount you are approved for prior to making an Offer to Purchase on a property. Qualifying for this is based on meeting with BVCU and providing your information on income, net worth, current debt repayment, and down payment saved; pre-approvals are provided subject to the valuation of the home you are looking to purchase.

Prepayment Penalty: A fee charged a borrower by the lender when the borrower prepays all or part of a mortgage over and above the amount agreed upon.

Prime: The lowest rate a financial institution charges its best customers. Prime is based on the Bank of Canada Prime Borrowing rate.

Principal: The original amount approved and borrowed, before interest.

Q: Nothing here!

Refinance: The borrower is interested in obtaining a new mortgage on an existing property. You might be looking for more money, a better rate or different repayment terms.

Registration Fees: Fees paid to the provincial government for recording a title transfer and mortgage registration.

Renewal: When the mortgage term has concluded, your mortgage is up for renewal. It is open at this time for prepayment in part or in full, then renews.

Sagen (formerly known as Genworth Financial Canada): A private mortgage insurance company. One potential source of mortgage insurance for high-ratio mortgages.

Sales Taxes: Taxes applied to the purchase cost of a property. Some properties are exempt from sales tax and some are not. For instance, residential resale properties are usually GST exempt, while new properties require GST. Always ask before signing an offer.

Security: In the case of mortgages, the real estate offered as collateral for the loan.

Service charges: The extra costs incurred when hooking up power etc. to a new address.

Survey: The legal written and/or mapped description of the location and dimensions of your property. The survey should also show the dimensions and placement on the lot of any structure, including additions such as a pool, shed or fence. An updated survey is often required by a lender as part of the mortgage transaction. Also known as a Real Property Report.

Taxes: Mortgage customers are offered the choice to either pay their own property taxes directly to the municipality or have the lender collect taxes as part of their regular payment and remit it to the municipality on their behalf.

Term: The period of time the financing agreement covers. BVCU has a range of terms to suit your needs.

Title: A freehold title gives the holder full and exclusive ownership of land and buildings for an indefinite period of time. In condominium ownership, land and common elements of buildings are owned collectively by all unit owners, while the residential units belong exclusively to the individual owners. A leasehold title gives the holder a right to use and occupy land and buildings for a defined period of time.

Title Transfer: When one or more clients on the mortgage are being added, deleted, or being replaced with a new person, or if the mortgagor’s status is being changed to or from co-borrower, or to or from guarantor. This may happen in situations of marriage or divorce for example.

Transfer Mortgage: The process of moving the mortgage debt to a new financial institution. A mortgage may be moved to or from one mortgage company or financial institution to another.

Total Debt Service (TDS) Ratio: It is the other mathematical calculations used by lenders to determine a borrower’s capacity to repay a mortgage. It takes into account the mortgage payments, property taxes, approximate heating costs, and 50% of any maintenance fees, and any other monthly obligations (for example personal loans, car payments, lines of credit, credit card debts, etc.), and this sum is then divided by the gross income of the applicants. 
Undertaking: A promise by a lawyer to ensure that certain conditions, usually of the lender, are met. A good example of this is releasing funds before a new mortgage document is officially registered.

Underwriting: The process of deciding whether or not to lend you money based on all the information you have provided to the lender.

Variable Rate Mortgage: A mortgage for which the interest rate fluctuates based on changes in the prime interest rate. This can also be referred to as a floating rate (a rate that changes based on Prime plus a fixed rate).
Verification of Income: The lender will contact a borrower’s employer in order to verify information provided in a mortgage application or a job letter; your income structure, length of employment, and position.

W through Z: nothing here!
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