Residential Mortgages

mortgageRegardless of whether you are buying a home, building your dream home or refinancing your existing home, Dundalk Credit Union is committed to helping you get a mortgage that is right for you. We will work with you to find the right mortgage that best suits your needs.  If you are a first time home buyer, we can guide you through using the Home Buyer’s Plan (HBP) to withdraw funds from an RRSP to help buy or build your first home. You can apply in person at either location. An appointment is recommended but not always necessary. Approval decisions and administration are handled locally by our capable staff and we pride ourselves on giving you the answers you need quickly. There are no application or renewal fees; interest rates are competitive and pricing is based on customer circumstances.  Contact one of our mortgage lenders to help you achieve home ownership faster!

Types of Residential Mortgages

Conventional Mortgage

Conventional mortgages require a down payment or equity in your home of at least 20%.  With a conventional mortgage you can still choose between a fixed interest rate set for up to five years or a variable rate of interest that will fluctuate with the Dundalk Credit Union prime rate.  Variable rate mortgages are open so you can pay off your mortgage early with no prepayment penalties. With either a fixed or variable mortgage you have the option to choose weekly, bi-weekly, semi-monthly, monthly, or accelerated blended payments of principal and interest.  The maximum amortization period is 25 years. 

High Ratio Mortgage

A High Ratio Dundalk Credit Union mortgage gives you options even if you do not have a 20% down payment.  These mortgages are available to qualified borrowers with down payments as low as 5%.  This type of mortgage must be insured through Sagen.  There are many mortgage solutions available to borrowers with low down payments.  You can choose a fixed interest rate set for up to five years or a variable rate of interest that will fluctuate with the Dundalk Credit Union prime rate.  With either a fixed or variable mortgage you have the option to choose weekly, bi-weekly, semi-monthly, monthly, or accelerated blended payments of principal and interest.  The maximum amortization period is 25 years. 

Home Equity Line of Credit

The flexibility of borrowing through a Home Equity Line of Credit may be right for you if you are a homeowner with at least 25% equity in your home.  You apply only once and after your Home Equity Line of Credit is set up you can access your funds in the branch, by cheque, at the ATM, online, or by using your debit card whenever you need to.  Monthly interest payments are required and you only pay interest on the funds you use. Deposits made to your credit union account are credited directly to the outstanding balance on your Home Equity Line of Credit immediately, reducing the amount of interest you pay monthly. The interest rate is better than Personal Lines of Credit because your Home Equity Line of Credit is secured by a mortgage on your home.

Home Builder’s Mortgage

A Dundalk Credit Union Home Builder’s Mortgage offers access to the funds you need throughout the various stages of your construction project.  Home builder’s mortgages may be conventional or they may be high ratio insured through Sagen.  You will need to provide a set of house plans and quotes for the project as part of the application process.

Mortgage FAQs

What is the difference between the term of a mortgage and the amortization period?

The term is the length of time for which your specific rate of interest is set in your mortgage contract. At the end of the term you can pay the balance of the principal if you wish or you can renew your agreement with a new renegotiated interest rate. The amortization period is the actual number of years it will take to repay your mortgage in full. The maximum length of term on a credit union mortgage is 5 years and the maximum amortization period is 25 years.

What is Gross Debt Service (GDS) Ratio?

GDS is calculated as the percentage of gross (pre-tax) monthly income required to cover monthly housing costs. Housing costs include mortgage payments, property taxes and heating costs. Generally a GDS ratio of no more than 35% is recommended.

What is a Total Debt Service Ratio (TDS) Ratio?

TDS is calculated as the percentage of gross (pre-tax) monthly income required to cover monthly housing costs and other debt payments. Housing costs include mortgage payments, property taxes and heating costs and other debt payments include such things as personal loan payments, line of credit payments and credit card payments. Generally a TDS ratio of no more than 42% is recommended.