Toronto, Canada (PRWEB) June 16, 2014
Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is responding to recent reports that credit unions are joining the mortgage wars, offering ultra-low lending rates as the already-hot Canadian real estate market heats up even further.
“After a long cold winter, the dormant Canadian real estate market roared back in the spring,” says Bob Aggarwal, president of Canadalend.com. “With summer around the corner, the Canadian housing market is expected to heat up even further, and Canadian lending institutions are doing everything they can to lure potential home buyers.”
Credit Unions are taking on Canada’s big banks in an effort to attract more customers. One Ontario-based credit union recently announced that it now offers a five-year fixed rate loan for as low as 2.79%. These new lending rates undercut Canada’s big banks, which kicked off the competitive spring real estate season with five-year fixed rate terms near 2.99%. (Source: Marr, G., “Credit unions take on banks in mortgage wars with rates as low as 2.69%,” Financial Post, June 9, 2014; http://business.financialpost.com/2014/06/09/credit-unions-take-on-banks-in-mortgage-wars-with-rates-as-low-as-2-69/.)
“Because credit unions are free from federal regulations, they are not bound by the same strict lending rules that Canada’s big banks are,” Aggarwal adds. “As a result, credit unions can compete on some lending products that Canada’s big banks cannot provide, though borrowers who require default insurance are still subject to federal guidelines if they go to a credit union instead.”
Aggarwal explains that while these numbers may look very attractive to first-time home buyers, there’s always more to the lending rate than meets the eye. With some ultra-low fixed mortgage rates, the lending institutions subject their clients to unconventional rules, including how much they can increase their payments annually and prepay without penalty. In some instances, borrowers cannot break their ultra-low mortgage rates before they come up for renewal unless they sell the property, refinance with the same lending institution, or renew with another of the bank’s lending products.
“Getting a great lending rate is important, but there’s more to consider when getting a mortgage than just interest rates. That’s why when it comes to finding a mortgage that’s right for you, it’s best to call a licensed, independent agent,” Aggarwal concludes. “At Canadalend.com, our agents work for their clients, not a bank or credit union. They search hundreds of banks and lending institutions to help them find the mortgage that is best suited to our clients’ short- and long-term financial needs. And in most cases, they also get their clients pre-approved for a mortgage in less than 24 hours.”
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addresses financing concerns. To learn more about Canadalend.com, visit the web site at http://www.Canadalend.com.