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At Buduchnist Credit Union we understand that every member has different borrowing needs. Our Financial Service Officers will work with you to choose the borrowing option which best suits you and your family.
Applying for your first loan? Visit one of our branches and we will be pleased to review your needs and discuss available credit options.
In order to process your application quickly you should be prepared to provide the following information:
- the purpose for your application;
- personal information including employment and income histories; driver's licence; Social Insurance Number;
- details of your assets and liabilities.
If you are concerned about qualifying for a loan, you may want to consider:
- providing collateral security for the loan: Collateral is something that you own (ie. equity in your home, automobile or GICs) which will provide extra security for the credit requested.
- Having a co-signor guarantee your loan: A co-signor is someone who becomes equally responsible for repaying a loan with you.
For loan calculators and amortization schedules click here.
Whether you are making a large purchase or planning for that special occasion, a personal loan can help make your decisions so much easier. With a BCU personal loan you can take advantage of:
- Competitive fixed or variable rates;
- Flexible repayment options;
- 1-5 year terms;
- Life and Disability insurance;
- Better rates than those of your credit card company.
All member loans at BCU offer:
- Easy access through Interac;
- A 2% discount on your Line of Credit if your payroll is automatically deposited into your Buduchnist account (some restrictions apply);
- Free monthly statement or passbook;
- Life and disability coverage at low cost;
- Monthly, biweekly, weekly payment schedules.
Looking for a new or used car? Our competitive
rates allow affordable monthly payments. We offer car loans with fixed rates for easy budgeting. You can speed up the approval process simply by printing and completing the loan application form and bringing it with you when you come in to see one of our Financial Service Officers.
Has the RRSP season caught up with you again? Don't miss making that contribution because you're short on cash. Buduchnist Credit Union offers flexible RRSP loans for less than prime. Since the benefits are maximized if you can repay the loan within one year, pay the loan down quickly by using your tax refund.
RRSP loans are also an easy way to catch up on your unused contributions.
Over the long term, borrowing money to invest in an RRSP makes sense since the compounded interest and tax benefits outweigh the cost of an RRSP loan.
There are many benefits of consolidating your debt. You may find yourself paying a lower overall rate of interest while managing one monthly payment. By consolidating the different borrowing options you are using, you can quickly and conveniently eliminate your debt.
Application Form
Buduchnist Credit Union's loan application is available for downloading. Fill out the necessary information at your convenience before meeting with a Financial Services Officer.
Click here to download the loan application. * Requires Adobe Acrobat Reader.
For more information on loan options contact a Financial Services Officer.
Take care of the unexpected with a Buduchnist Line of Credit. Should you need funds for that special purchase or in the case of an emergency, a Buduchnist Line of Credit is always available. A line of credit is simply an extension of your chequing account. When your chequing account is short, funds are automatically drawn from your line of credit to cover the shortfall. In other words, you use your line of credit only when you need it. And you only pay interest on the amount drawn.
Reduce the interest rate charged by securing your line of credit with investments or your home.
Convenient ways to manage your Line of Credit:
- Review account status and recent transactions online;
- Make cash withdrawals from any bank machine;
- Transfer funds to and from your other BCU accounts.
In times when you might be running short of funds, Overdraft Protection will ensure that your cheques are covered. Upon approval, Overdraft Protection will provide up to $10,000 coverage per member.
Financing large purchases using the equity in your home can save you thousands of dollars.
Whether you're considering renovating your home, making that special purchase or preparing to pay for your child's education, you can borrow up to 75% of the equity in your home (subject to approval). Once the funds are available, you withdraw only the amount you need and you can make monthly payments of as little as interest plus $100.
The costs of education have skyrocketed and students feel the burden. The Buduchnist Student Line of Credit allows students to borrow money when they need it, to a maximum of $5,000 per year (subject to approval). Unlike a loan, you pay interest only on the amount you withdraw. To qualify, you must be enrolled in a full time program at an accredited college or university with Canadian citizenship or landed immigrant status.
For more information on lines of credit contact a Financial Services Officer.
Buying your first home can be an exciting and incredibly rewarding experience. However, arranging for your first mortgage can seem overwhelming. There are many options to choose from - long or short term, fixed or variable rate. However, a mortgage is a long term commitment and all options should be evaluated with one of our Financial Services Officers before making any decisions.
Mortgage Basics
How much can I afford?
Buying a home could be the most valuable purchase of your life. The simplest way to determine a price level which is compatible with your income and lifestyle is using the Mortgage Calculator.
For a conventional mortgage, you will require a minimum 25% down payment of your home's purchase price. Some options for a down payment include:
- Cash on deposit
- Using your RRSPs. The Canadian Government allows $20,000 to be cashed in per person and receive 100% of the value of the RRSP to be put towards the purchase of a home. See their website at www.cra-arc.gc.ca for more information.
CMHC/Insured mortgages
If you do not have the required 25% down payment to purchase your home, you may qualify with as little as 5% through Canada Mortgage and Housing Corporation's Insurance. This is considered a high ratio mortgage and there are insurance fees associated with this type of mortgage. For more information visit www.cmhc-schl.gc.ca.
What are the costs associated with buying a home?
Aside from the down payment there are other costs associated with purchasing a home. Some of these costs are:
- Closing costs (up to 2.5% of the basic purchase price)
- Inspection fee to have the home inspected by a professional building inspector
- Attorney or notary fees
- Land transfer tax
- Property insurance needs to be in place before you can take possession
- Moving costs
Mortgage Life and Disability Insurance
Buduchnist Credit Union offers mortgage life and disability insurance to protect your loan obligations in case of the unexpected.
For more information, please contact your Financial Services Officer.
How can you pay off your mortgage sooner?
There are several ways to reduce the number of years it will take to pay off your mortgage.
- Select a weekly or bi-weekly payment schedule
- Pay down lump sums when permitted
- Select a shorter amortization period
Having a BCU mortgage pre-approved lets you shop with confidence because you'll know how much you can afford. We'll commit to a guaranteed interest rate for 90 days. The pre-approval is free and there's no obligation.
Closed mortgages
With a closed mortgage, you can lock in your interest rate for terms of one to five years. This means you'll always know what your payments will be. And along with that security, a closed mortgage usually offers a lower interest rate than an open mortgage.
A closed mortgage also allows you to:
* Make lump-sum payments any time during the year to a maximum of 20% of the original amount of your mortgage.
* Increase the amount of your payments once in each 12 month period by as much as 20% without fees or penalties.
Tip: Switching your monthly payment to a weekly payment schedule will help you pay off your mortgage sooner and save on interest.
Open mortgages
Maximum flexibility is yours with an open mortgage. These usually have slightly higher interest rate than fixed mortgages, but you can pay them off, without penalty, or switch to a closed mortgage whenever you like. Open mortgages are the preferred choice if you're planning to pay down a substantial portion of your mortgage or sell your home soon.
Open mortgages may be:
* Fixed-rate mortgages for a term of six months or one year, during which time the interest rate doesn't change.
* Variable-rate mortgages for a term of three years, during which the interest rate can rise or fall and is adjusted quarterly.
Your relationship with us is an important factor in determining your eligibility for credit. We can work with you to help improve it.
Your credit history is a measure of how reliable you are when it comes to repaying your debts. It's established by you - not your bank, a credit card company or a credit bureau.
If you have ever applied for credit in Canada, you will likely have a credit file kept at both of the country's two main credit bureaus Equifax and Trans Union of Canada.
The information in your credit file includes your birth date, Social Insurance Number, address and employment information in order to identify you, as well as a comprehensive history of the credit you use now or have used any time in the past 6 years. Your record is longer if you have ever declared bankruptcy.
Only members of credit bureaus may request a credit report and they can only do so with your permission. Most loan applications will include a statement that gives the lender permission to request your credit history.
If you consistently pay at least the minimum amount owing on your credit cards or lines of credit, don't miss making loan or mortgage payments and pay all your other accounts by the due dates, you will likely receive a good rating on all your credit.
It is a good idea to check your credit on a regular basis and ensure your information is accurate. Canada's credit bureaus will send you a copy of your credit report by mail, free of charge. For a fee, they will allow you to review it online.
Equifax 1-800-465-7166 www.equifax.ca
Trans Union of Canada 1-866-525-0262 www.tuc.ca
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