Community Savings featured on CTV National News today on what rate cuts mean for current and prospective homeowners
June 5, 2024 Vancouver / Unceded Territories of the Musqueam, Squamish and Tsleil-Waututh Nations - Community Savings Credit Union CEO Mike Schilling was featured today on CTV’s National News program, talking about the impact of Bank of Canada rate cuts for current home owners and prospective home buyers.
Community Savings Credit Union offers nationally-leading mortgage rates, in particular for insured mortgages. With today’s rate cut, the first since March 2020, we shared some advice with CTV listeners who may be current and prospective mortgage holders.
Shop around for your mortgage or your renewal. Many Canadians don’t switch their mortgage at renewal, and this means they may not be getting the best rate. Our advice is for buyers or homeowners at the renewal stage to shop around, through your local credit union or a mortgage broker, to find both the best rate and the best advice.
If you are buying a property below $1m, consider an insured mortgage. Many buyers don’t realize that even with mortgage insurance premiums, the lower insured interest rate may save them significant funds over the long term. After the first insured mortgage term, the mortgage holder qualifies for insured rates for the length of their mortgage. With an insured mortgage, a buyer only needs a 5% down payment – but for buyers of properties below $1m, even with a 20% deposit, an insured mortgage might be the right choice.
Look at different mortgage term lengths or amortization periods. Many buyers walking into our branches today are considering a 3-year term rather than the standard 5-year, given the changes to the rate environment in Canada. This summer, buyers can now also consider a 30-year mortgage on newly built homes, stretching the loan over an additional five years to help reduce monthly payments.
If you are a prospective buyer or planning to renew your mortgage in the near future, see our rates and get in touch with us for help.
About Community Savings:
Community Savings Credit Union is driven by its purpose to unite working people to build a just world. As BC’s largest fully unionized credit union, Community Savings provides best-in-class personal and business banking and advocates for financial equity, workers’ rights and mental health.
Community Savings operates six branches across the Lower Mainland and Victoria. It lives by its values, from being the first financial institution to become a Living Wage employer in 2010 to winning the 2022 BCBusiness Business of Good Workplace Wellness Award for its innovative staff wellness programs. For more about Community Savings, visit www.comsavings.com.
