Meridian Credit Union Mortgage Rates and Benefits Explained

Meridian Credit Union offers competitive mortgage rates that can help you save money on your home loan. Their rates are often lower than those of traditional banks.

Their mortgage rates are influenced by market conditions and may fluctuate over time.

You can save up to 25% on your mortgage interest by choosing a 20-year amortization period.

The longer your amortization period, the more you'll pay in interest over the life of the loan.

Meridian offers a wide range of mortgage products to suit different needs and preferences.

One of the standout features of Meridian's mortgage products is the variety of term lengths available. From short-term options to long-term commitments, you can choose a term that fits your financial situation and goals.

Meridian also offers fixed and variable rates, allowing you to lock in a stable interest rate or take advantage of potential savings with a variable rate.

In addition to these standard options, Meridian has a range of specialty mortgage products designed for more specific needs.

To get a mortgage, you'll need to provide financial documents, including pay stubs and bank statements, to demonstrate your income and creditworthiness.

First, check your credit score, which is a key factor in determining your mortgage interest rate. A good credit score can help you qualify for better rates and terms.

Next, gather your financial documents, such as tax returns and proof of employment, to provide to your lender. This will help them assess your ability to repay the loan.

You'll also need to decide on a mortgage type, such as a fixed-rate or adjustable-rate loan, and consider factors like loan terms and interest rates. Meridian Credit Union offers competitive mortgage rates and flexible loan options.

Make sure to shop around and compare rates from different lenders, including Meridian Credit Union, to find the best deal for your needs.

The mortgage rate landscape is constantly changing, and it's essential to stay informed. Mortgage rates have been incrementally raised by big banks over the past 12 months, despite the Bank of Canada's rate cuts.

Historically, lenders have been keen to cut rates in the lead-up to the busy spring buying season to gain market share. In recent years, we've seen significant rate drops, such as BMO's 5-year mortgage rate being slashed to under 3% in March 2014, and BMO and TD cutting their mortgage rate to a record low of 2.79% in March 2015.

More than two-thirds of mortgage-holders opt for fixed-term loans, according to the Canadian Association of Mortgage Professionals. This is likely due to the stability and predictability of fixed rates.

Understanding the Rate History can be a bit confusing, but it's actually quite straightforward. The 1-year fixed-rate history has seen significant fluctuations over the years, with rates ranging from around 2% to over 6%.

One key thing to note is that the 3-year fixed-rate history has generally been lower than the 1-year fixed-rate history, often by a full percentage point or more. This is because lenders tend to offer more favorable terms for longer loan periods.

If you're considering a 5-year fixed-rate mortgage, you should know that the 5-year fixed-rate history has been relatively stable, with rates rarely dipping below 3% or exceeding 6%. On the other hand, the 5-year variable rate history has been more volatile, with rates varying by as much as 2% or more.

A good benchmark for interest rates is the Prime Rate, which has historically hovered around 3-4% over the past few decades. Here's a quick rundown of the rate history:

The competitive market for mortgages is heating up. In recent years, mortgage lenders have been keen to cut their rates in the lead-up to the busy spring buying season to gain market share.

Meridian's announcement is a first strike in this battle, slashing their 5-year mortgage rate to under 3% in March 2014 and further cutting it to a record low 2.79% in March 2015.

More than two-thirds of mortgage-holders opt for fixed-term loans, according to the Canadian Association of Mortgage Professionals.

This trend is set to continue, with the average price of a Canadian home rising 12% in 2015 to $454,342 at the end of December.

Here are some notable mortgage rate cuts in the past:

If you're looking to buy a home with a high-ratio mortgage, you're likely aware that rates can fluctuate. We'll hold your rate for up to 120 days, giving you time to search for your new home without worrying about rates changing.

This rate lock can be a huge relief, especially for first-time homebuyers who may be juggling multiple offers and inspections.

The 5-Year Closed Special is a great option for those looking for a fixed mortgage rate. Meridian Credit Union offers a 5-year closed special fixed-rate mortgage with an interest rate of 4.64%.

This special fixed-rate means your payments will stay the same for the whole term, even if interest rates go up. A great choice if you have a down payment of 20% or more.

In recent years, mortgage lenders have been keen to cut their rates in the lead-up to the busy spring buying season in order to gain market share. This is evident in the fact that BMO and TD cut their mortgage rates to a record low of 2.79% in March 2015.

Here are some key facts about the 5-Year Closed Special:

The average price of a Canadian home rose 12% in 2015 to $454,342 at the end of December, the Canadian Real Estate Association said. This means that many homebuyers will be looking for a fixed mortgage rate to secure their payments.

Meridian's announcement came with a potshot against the big banks, who haven't passed on the full extent of the last two central bank rate cuts to consumers by lowering their consumer rates by the same amount.

Meridian offers a variety of mortgage options to suit different needs. Meridian offers closed fixed-rate mortgages with term lengths of 1 to 10 years, all with competitive interest rates compared to similar products.

If you need more flexibility, a 6-month convertible fixed-rate mortgage is available, which can be converted to a longer fixed-rate mortgage term at any time. This option provides peace of mind in case your financial situation changes.

A 1-year open fixed-rate mortgage is also available, but it comes with a much higher interest rate than the closed option.

Fixed-Rate Loans can provide stability and predictability with your mortgage payments.

Meridian offers closed fixed-rate mortgages with competitive interest rates compared to similar products, with term lengths ranging from 1 to 10 years.

A 6-month convertible fixed-rate mortgage is also available, which can be converted to a longer fixed-rate mortgage term at any time.

This option offers flexibility in case you need to adjust your mortgage plan.

Variable-rate loans offer a lot of flexibility, and one of the most common terms is the 5-year variable mortgage. You can secure a 5-year variable mortgage at 4.94% or a 5-year variable high ratio mortgage at 4.74%.

One of the benefits of variable-rate loans is that they often have lower penalties for breaking a mortgage mid-way through a term. Meridian bank variable rates are only offered as 5-year terms, which is fairly common.

If you're looking to refinance, Meridian offers various calculators to help you make informed decisions. These include a refinance calculator, penalty calculator, debt consolidation calculator, and maximum equity calculator.

Prepaying your mortgage can help you pay down your balance sooner and incur less interest costs. With Meridian, you can make lump-sum prepayments of up to 20% of your mortgage balance each year without incurring a penalty.

Increasing your monthly mortgage payment can also help you become mortgage-free sooner. Even small increases can make a big difference over time, and it's a good idea to review your budget and see where you can allocate more funds towards your mortgage payments.

Here's a breakdown of Meridian's prepayment options:

Hybrid Loans are a unique option for borrowers who want to purchase a more expensive home than they might otherwise be approved for.

The Meridian Hybrid Mortgage involves splitting the mortgage principal into two parts - a small traditional mortgage, and a larger interest-only mortgage.

For the first 5 years of the mortgage, regular payments are lower because you're paying off less of the principal.

In 5 years, you're hopefully earning more and can afford to increase your regular payments.

This type of loan suits a specific kind of borrower, typically young people early in their career.

The Flex Line is a mortgage option that combines a mortgage and a home equity line of credit (HELOC). This allows you to borrow up to 80% of your home's value.

With a Flex Line, you can pay back the borrowed amount at any time, without having to worry about a set repayment schedule. This flexibility is perfect for unexpected expenses or large purchases.

You can add a Flex Line to an existing variable rate or fixed rate mortgage, making it a convenient option for those who already have a mortgage with Meridian. A Flex Line can also be added at the initial mortgage stage, making it a great option for first-time homebuyers.

A Flex Line can be used for a variety of purposes, such as renovating your home, paying for education costs, or making a big purchase.

Meridian, a credit union, is owned by its members, which means their goal is not solely to make a profit. This focus on customer service and community involvement sets it apart from banks in Canada.

Unlike banks, Meridian is not federally regulated, which means you're more likely to qualify for a mortgage without having to pass a mortgage stress test.

As a credit union, Meridian's priority is helping its members get the financing they need, rather than just making a profit. This approach can make a big difference in your mortgage application process.

Not being federally regulated also means Meridian can offer mortgage options that might not be available at big banks in Canada.

With Meridian Credit Union, you have the flexibility to choose your mortgage payment schedule to match your employment schedule. You can opt for monthly, bi-monthly, bi-weekly, or weekly payments.

This flexibility can help you save interest over the life of your mortgage. The shorter the time period between payments, the less interest you'll incur.

Meridian will accommodate any changes you want to make to your payment schedule, giving you the freedom to adjust as needed.

You can hold your rate for up to 120 days, giving you time to search for your new home without worrying about rates changing.

This feature is particularly useful if you're not ready to commit to a mortgage right away, but you want to lock in a rate for when you are.

Meridian will hold your rate for 120 days, and you won't have to make any commitment or obligation during this time.

You can start your mortgage application and take advantage of this rate hold period, so you can shop for your new home with peace of mind.

You can choose from a variety of payment schedules with Meridian, including monthly, bi-monthly, bi-weekly, and weekly payments. This allows you to match your mortgage payments to your employment schedule.

Making more frequent payments can save you interest over the life of your mortgage. The shorter the time period between payments, the less interest you'll incur.

Weekly or bi-weekly payments can help you pay off your mortgage sooner. This is because you're making more payments per year, which reduces the principal amount owed.

Meridian will accommodate changes to your payment schedule if you need to make adjustments.

If you're considering a Meridian credit union mortgage, it's worth weighing the pros and cons to make an informed decision.

Meridian's customer service is often praised for being helpful and accommodative, making it easier to get a mortgage even in challenging situations.

One potential drawback is that Meridian's branch network is limited to Ontario, which may not be convenient for those living elsewhere.

On the other hand, Meridian doesn't require passing a mortgage stress test to get a mortgage, which can be a relief for those who are concerned about their ability to pass the test.

However, it's worth noting that other lenders may offer more competitive mortgage rates than Meridian, so it's essential to shop around and compare rates.

Here are the key benefits and drawbacks of a Meridian credit union mortgage at a glance: