Lending

Loans & Mortgages

At Bulkley Valley Credit Union we provide a full range of personal lending services at each of our four branch locations. We also offer competitive interest rates with the most flexible payment options.

Personal/Consumer Loans
  • competitive interest rates on a fixed or variable basis
  • no penalties on extra payments or early payout
  • a full range of life, disability, critical-illness and loss-of-life insurance at reasonable rates
Line of Credit
  • operates on a revolving overdraft basis; you pay interest only on the amount you borrow
  • fixed or variable rate of interest
  • minimum monthly deposit required on outstanding balance
  • life, disability and critical illness insurance at reasonable rates
Mortgages
  • local administration and decision-making
  • full range of terms, 6 months - 10 years
  • open or penalty options
  • fixed rate or regular variable rate
  • flexible repayment options, such as weekly, bi-weekly or monthly, to meet your requirements
  • life, disability, loss-of-employment and criticalillness insurance at reasonable rates
  • construction mortgages
    • up to 1 year for completion
    • interest-only payments during construction
    • no interim financing required; single mortgage
  • document
  • conventional, high-ratio (up to 95%) equity take-out, recreational, bridge financing and undeveloped-property mortgages
  • mortgage transfer program
What can your mortgage do for you?

“When it comes to choosing the mortgage rates and terms that suit you best, CreditMaster® keeps you flexible. Stuck between a fixed and variable rate mortgage? You can choose both. And if you want to stagger their maturity dates, you can do that too. You can even move some of your mortgage into a home equity line of credit, paying as little as the monthly interest, or as much as you want.

The option to re-advance makes CreditMaster® a powerful financial planning tool, and much more than a mortgage. Simply put, CreditMaster® allows the equity in your home to work for you today, which can really help you open a lot of new doors in your life”.

The Renewal Process

When your mortgage term comes to an end, you will have to renew it for another term. This is a good opportunity to reassess what you need in a mortgage and to look for mortgage options that better fit your needs today. Do you want to change your payment frequency? Do you want to consolidate other debts that have higher interest rates? Do you need money for major renovations?

Interest Rates

Comparing interest rates is fairly simple. Provided the conditions are the same, a 5.5% 5 year mortgage is obviously cheaper than a 5.6% 5 year mortgage. Be sure to check the basis for calculations. Most fixed mortgage interest rates are calculated on a semi-annual compounding basis. However, most variable interest rates are calculated on a monthly compounding basis. Depending on the method of calculation used, there is a difference in cost to you. The more frequently the interest is compounded, the higher the overall cost of the mortgage will be to you.

Ways to Reduce Interest Costs

We offer flexible repayment options; weekly, bi-weekly, semi-monthly or lump sum payments on your mortgage within pre-payment options without penalty. Making additional or weekly payments can substantially reduce the cost and life of your mortgage. For example if you decide to make weekly payments on your mortgage, the monthly payment amount is divided into four to arrive at a weekly payment. Since there are 13 four week periods in a year, you can make the equivalent of one additional month’s payment each year.

The Effect of Weekly Payments:
A comparison between a mortgage of $100,000 with conventional monthly payments and one of the same amount being paid weekly. In this example, by making payments weekly, you can save $23,458.74 and almost 5 years on your mortgage.

$100k @ 7% interest Monthly Payments Weekly Payments
Payment per period $700.42 $175.11
Total annual payment $8,405.04 $9,105.72
Total interest $110,126.00 $86,667.26
Amortization period 25 years 20.5 years
 
Amortization

Choosing a longer amortization period because it lowers your mortgage payments means it takes you longer to pay back the mortgage principal and as a result the more interest you will pay which can affect your ability to save for other important things, such as retirement.

Amortization Period Monthly Payments Total Interest Payment* Total Payments*
10 years $2,213.05 $65,562 $265,562
15 years $1,679.77 $102,358 $302,358
25 years $1,278.61 $183,885 $383,885
30 years $1,189.65 $228,271 $428,271

 

Fixed vs. Variable

Fixed Rates:
Gives you peace of mind because your mortgage payment and interest rate will remain unchanged for the term chosen. It allows you to repay portions of the mortgage amount through extra payments called “prepayment privileges” without a penalty.

Variable Rates:
Potential for significant savings of interest costs and improved flexibility. The interest rate varies during the term of the mortgage.

Interest rates on variable rate mortgages are often lower than the fixed interest rate offered at the time you sign the contract. However, whether you are better off with a variable interest rate mortgage compared to a fixed interest rate mortgage depends on the movement of market interest rates during the life of your mortgage.

When interest rates change, if you choose variable rates, the following can happen:

  1. Your payment goes up or down each time market interest rates change.
  2. Your payment stays the same when market interest rates go down, but increases when market interest rates go up. In this scenario more of your payment goes toward paying down the principal when the interest rate falls.
  3. Your payment does not change unless market interest rates increase to a “trigger” point . Only at that point will the lender increase your payment.
 
Renegotiating Your Mortgage: Before Your Term Ends

During your mortgage term, if you find that your current mortgage no longer meets your needs or interest rates go down, you may want to renegotiate your mortgage agreement—in other words, change the conditions of your current mortgage. Before you do, you need to determine whether renegotiating your mortgage is worth the potential costs. There may be better alternatives to meet your needs.

If you have a closed mortgage, you may be allowed to break your mortgage agreement; however you may be charged a penalty and some fees. Penalty charges will be outlined in your mortgage agreement and describe how the penalty is calculated. It is generally linked to your mortgage interest rate and may cost thousands of dollars. Keep in mind that the penalty can change from day to day because it is based on current market interest rates, the outstanding balance left on your mortgage and the amount of time left on the mortgage term; however it can be estimated should you inquire.

Typically, penalties will be calculated the greater of: three months interest OR the interest rate differential which is the difference between your mortgage rate and the rate of a mortgage that is closest to the remainder of your term, multiplied by the outstanding balance of your mortgage for the time that is left on your term. It is calculated on the amount being prepaid.

Example: A mortgage of $100,00, amortized over 25 years, fixed interest rate 7.5% for a five‐year term. Monthly payments of $732. There is 36 months left on a 60 month term. Amount left to pay on the mortgage $97,007.

Assume you are interested in taking advantage of lower interest rates currently being offered. The current mortgage rate for 36 month period is 5.5%. Your penalty would be $5,820.00.

You need to consider whether it would be better to pay the penalty and renegotiate a new mortgage term at a lower interest rate or using the money to make a lump sum payment; whether or not you will really save any money after paying the penalty; whether interest rates are forecasted to drop further during your mortgage term.

Mortgage Protection

Mortgage Protection is a very simple and affordable way to protect you and your loved ones from unexpected financial loss.

You work hard for your money and your lifestyle but sometimes life can take a hard turn, you may find yourself critically ill, totally disabled, or you or your loved one may pass away leaving unplanned, overwhelming debt. Mortgage protection provides you:

Security
Protect against the unexpected by safeguarding your assets and your family.

Peace of Mind
Payment protection allows you the freedom to enjoy your life, worry free from financial stress for you or your loved ones.

Affordable Coverage
If you compare the cost of the insurance against the cost of replacing what you may lose without it, you will see its true value.

Convenience
Enrolling is easy.

When you are talking with your lender about your mortgage needs, ensure you discuss your mortgage protection options.

Accumulator Term Deposits

Accumulator Term Deposits are a convenient way to save for your annual expenses, such as fire insurance and property tax. Deposits can be made to match your payment frequency. It’s convenient, it’s flexible and can be customized to meet your needs.

Key Points to Remember…
  • A mortgage is probably one of the biggest financial commitments you will ever make
  • If you are considering renegotiating your mortgage, make sure you have complete information about any penalties and fees involved, so that you can weigh the costs and benefits before making a decision
  • Read your mortgage agreement carefully before you sign it; ask about anything you don’t understand
  • Know the features (such as ability to make prepayments or to increase your regular payments) and discuss other services that are important to you.

In Our Community

  • BVIS Accepting Donations

    Bulkley Valley Insurance Services will be accepting the follow items for the Broadway Shelter. Adult size jackets, boots, socks, longjohns and mitts or gloves! They will be accepting donations from November 22 to December 14th. Anyone who donates an item is welcome to enter into a draw for a $200 Gift Card from Totem Audio!

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  • Branch Hours

    Bulkley Valley Credit Union will be closed November 10-12 for Remembrance Day. We will be open with regular branch hours on Friday, November 9thth and then reopen on November 13th.

    Lest We Forget.

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  • Happy Halloween

    The Directors, Management, and Staff at Bulkley Valley Credit Union would like to take this opportunity to wish everyone a very safe and happy Hallowe’en.

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