Custom Mortgage Solutions

Tailoring your mortgage to fit your unique needs

Northern Birch Credit Union is here to support you on your journey towards financial well-being. The information in this article is provided as an educational overview. Each member’s financial journey is unique. We encourage you to talk to us – we can help you reach your financial goals.

As interest rates readjust to the falling inflation rate, Canadians are considering refinancing or purchasing their first home. For many of us, our home is the most important and most expensive purchase in our lifetime. Navigating the process of obtaining a mortgage can seem daunting, whether you’re a seasoned homeowner or a first-time buyer.

Northern Birch understands the challenges.

For more than 50 years we have been walking alongside our members, helping them make wise decisions and providing loans, savings and investment products that help them grow their financial well-being. We specialize in customized solutions for each member. We know it’s important for you to receive the best interest rate possible, low service fees and opportunities to reduce your debt load.

But we are more than that. We are a part of a larger community and we work to impact the organizations, events and causes our members support.

Our lending team specialize in custom solutions tailored to your needs. We assist our members as they explore different options for home ownership, including single-family mortgages, Co-ownership and Co-operative mortgages.

What is a Mortgage

At risk of oversimplifying the subject, it’s important that we understand exactly what a mortgage is. A mortgage is a secured loan, specifically using a property as the security. In exchange for the funds to finance your request, Northern Birch holds a claim on your property until the loan is fully repaid. We are partners with our members, helping them purchase their forever home, provide financing for other larger ticket items or work their way up the real estate market.

Types of Mortgages

Your situation is unique. We work with you to provide the best financing solution for your personal situation. Here are some general categories of mortgages to help you as you consider purchasing property.

1. Home Mortgages

   Many homeowners choose a fixed-rate mortgage. That means the interest rate stays constant throughout the term of the mortgage. It doesn’t change with the fluctuations in the market. Your monthly payments remain the same. It’s often a wise choice for homeowners who want a stable budget and predictable payments.

   Some owners choose a variable-rate mortgage. This may mean a slightly lower rate than a fixed rate, but the rate will fluctuate as the markets change. This is positive in times of falling interest rates but means higher payments should the interest rates go up. Historically, variable rates tend to save homeowners over the life of the mortgage. However, there is no guarantee and not all homeowners are willing to take that risk. Today, as interest rates have risen rapidly in the past several years, variable rates are less desirable for families who want the security of a fixed payment.

2. Co-operative & Co-Ownership Mortgages

   We have a long lending history for homeowners investing in Co-operative and Co-ownership housing. Co-operative housing in Toronto was launched by a project designed and led by Estonian immigrants frustrated by the shortage of post-war housing. In 1951 a group of newly arrived Estonians incorporated as a non—profit, limited company in order to build affordable homes in their city of choice.

   The rest is history!

   Our lending specialists understand Co-op housing and are experts in the field. They work with buyers who want to buy into a Co-op housing arrangement, helping them fully understand the concept of the shared asset.

   We also work with groups pooling assets to purchase property collectively. Sharing a home and a mortgage can help first-time homebuyers get on the real estate ladder. We are able to provide flexible solutions, as we look at each mortgage request individually, providing our best rates and repayment schedules.

What do I have to do to get a mortgage?

Step 1: Consider your Personal Financial Situation

Start by surveying the market to understand the cost of purchasing a home. Use Northern Birch’s mortgage calculator to get an estimate of monthly mortgage payments. Take a look at your monthly budget to see how much you can afford. Your budget will determine the type of properties to focus on.

Step 2: Do your Research

Using our website, explore the different options for mortgages. Read up on the advantages and disadvantages. Take the time to talk to friends and family, learning from their experiences. Referrals are acknowledged at Northern Birch.

Most importantly, make an appointment to speak with a Northern Birch lending specialist. Even if you’re not ready to purchase a property, we can help you set financial goals. Or, if it’s time to renew your mortgage, speak with us about your options. We are flexible and responsive to your needs and can help you refinance your home at our best rate, plus cover some, if not all, of the mortgage transfer costs.

Step 3: Apply for a Pre-Approval

Before you are ready to purchase a property, make sure you go through a pre-approval. That makes the process of home purchasing so much easier, as you already know how much you can borrow. Having a pre-approved mortgage shows your Realtor and sellers you are a serious buyer and can help to avoid delays in purchasing.

Our lending specialists will work with you, helping you gather the necessary information to complete the pre-approval application.

Step 4: Begin your Search

As you are looking for your property, have a list of “must”, “like” and “not necessary” criteria. It will help you assess potential homes objectively, making sure you have the features you need. Looking at homes with an objective friend or family member can also help you look beyond the surface.

For instance, a new parent looking at homes can get sidetracked by playsets, swings and kid’s “stuff” and overlook some challenges the actual home poses. A dramatic renovation of one room may cloud the lack of updates to the other house.

Step 5: Finalize your Mortgage

Talk to your mortgage specialist at Northern Birch, asking them to walk you through all of the costs including closing fees, insurance and other payments you may not have thought of. Make sure you ask about our cash back offer and see how much you are eligible for. It could provide appliances or furniture you may need.

None of us have a crystal ball to predict future mortgage rates or changes in the economy. But all of us have the opportunity to build a strong plan for the future, managing our resources in the best way possible. By taking advantage of regular financial checkups, staying in tune with seasonal special offers of a variety of products and giving your input to the community we call Northern Birch, we’ll help you grow your wealth, preparing for a solid future for you and your family.