• Why use a credit union for your mortgage?

    One of the tasks we have as mortgage brokers is to place our clients with the most suitable lender. How do we choose the best lender? There are many factors that come into play with this decision. Some of those factors include:

    • The type of transaction: renewal, switch, purchase
    • The client’s credit history
    • The size of the down payment
    • The location of the home that is being purchased or refinanced
    • The type of home that is being purchased or refinanced such as a rental or an owner occupied
    • The clients income and ability to qualify for the mortgage

    And the list goes on. This is why it is useful to choose an experienced mortgage broker in Hamilton and one that you can trust. The choice of which lender to send your business should be determined by one thing and one thing only: what is best for the client. It should never be influenced by what is best for the broker.

    When is it particularly useful to use a credit union as the mortgage lender?

    Credit unions tend to be more flexible with their ability to qualify a client for a mortgage. They are a kind of one stop shop for mortgages. They can help clients get qualified that may not be able to qualify elsewhere. But they also are generally very competitive for easy to qualify clients as well.

    For example, if somebody is putting 20% down on the purchase of a home and they are self-employed and not showing very much income, credit unions are generally able to understand that the clients have the ability to make the mortgage payments even though they may not declare a sufficient amount officially on their income taxes.

    Furthermore, credit unions have often up to three levels of products to help our clients qualify. it is all based on risk and the higher the risk the worse the terms. A client that does not qualify conventional he may still receive a mortgage but at a higher rate and possibly with a lender fee. This is not ideal, but sometimes it is necessary to make it possible for the home to be purchased. If a less desirable product is needed to realize the dream of purchasing a home, a credit union may make that possible. Another advantage is that since there are different products within the same company, the terms may be improved after the mortgage matures, so the client can move within the same bank from a B or C deal to an A deal.

    For clients with excellent credit, excellent income, and no issues whatsoever with the property or location, a credit union may not be the best option. This is something that we as mortgage brokers will weigh to help our clients make an informed decision.

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