Is a Cash Back
Mortgage right
for you?
Conditions and Disclosure Details
ERCU CASH BACK MORTGAGE OVERVIEW
Eagle River Credit Union offers cash back ranging from 1% to 5% of the total mortgage loan amount (to a maximum of $20,000) on fixed rate closed
mortgages. The benefit of Cash Back Mortgage include letting you decide how much cash back you need, and how to spend it.
OUR CASH BACK MORTGAGE CAN HELP YOU WITH:
• Closing costs
• Paying land transfer tax
• Lawyers’ fees
• Moving costs
• To make an additional lump sum payment on your mortgage
• To renovate, furnish, or decorate your new home
• To purchase investments, open an RESP or make an RRSP contribution
CREDIT GUIDELINES
• Minimum Credit Score - 650
• Maximum Total Debt Servicing Ratio - 40%
• Maximum Loan-to-Value - 95% Note that satisfying the minimum credit
entitle the applicant to credit; the strength of the overall application will be considered in the decisioning process.
• Payment Frequencies – Monthly and Bi-weekly
HOW MUCH CASH CAN YOU GET?
• The amount of money you receive is based on the size of term of your mortgage - up to 5% of its value up to a maximum of $20,000.
$100,000 $200,000 $300,000 $400,000 1% 1,000 2,000 3,000 4,000 2% 2,000 4,000 6,000 8,000 3% 3,000 6,000 9,000 12,000 4% 4,000 8,000 12,000 16,000 5% 5,000 10,000 15,000 20,000
Terms Cash Back Rate
3-5 years
5.0% Posted Cash back rate 4.0% Posted less 10 bps 3.0% Posted less 20 bps
2.0% Posted less Cash back rate 1.0% Posted less 50 bps
WHEN DO YOU GET YOUR PAYMENT?
• Your cash back is paid on the date your mortgage is advanced - just in time to help you cover immediate expenses, expected or otherwise! The money you receive is yours to keep so long as you hold your mortgage to the end of its negotiated term.
SPECIAL CONDITIONS
• Eligibility - To be eligible for cash back, borrowers are required to provide
proof of down payment. Residential mortgages are provided by Eagle River Credit Union and are subject to standard lending criteria. Eagle River Credit
Union must hold the first mortgage on the property and it must be owner occupied. Offer available on new purchase and or new construction only.
• Breaking a Cashback Mortgage Term Early: The borrower must keep their
mortgage loan at Eagle River Credit Union for the term stipulated in the contract. If the loan is reimbursed, transferred or becomes delinquent before the maturity date, the borrower is required to reimburse the Credit Union for the Cash Back amount granted on a pro-rated basis of the
remaining term. The amount is then added to the Discharge Statement.
MORTGAGE PRICE MATCH
IF YOU CAN FIND A BETTER
MORTGAGE RATE,
WE
WILL MATCH IT!
Conditions and Disclosure Details
Residential mortgages are provided by Eagle River Credit Union and
are subject to standard lending criteria:
• Minimum Beacon Score of 680.
• Total Debt Servicing Ratio of 40% or less. • Minimum mortgage advance of $50,000.
• Applicant must have a current and valid written rate commitment from the other institution specific to the client in order for rate match to be honoured.
• Available on all 1-to-5 year fixed terms mortgages. • Variable rate open term
• Rate match must be equal to mortgage term available at Eagle River Credit Union.
• Available on purchase, switch, refinance, and renewal.
• Excludes commitments of greater than 120 days and construction mortgages.
• Excludes cash back and cannot combined with any other offer. • Offer may be changed or withdrawn at any time without notice.
NEW HOME OWNER BUNDLE
Conditions and Disclosure Details
2.49% 5-year fixed rate Mortgage:
• Residential mortgages are subject to Eagle River Credit Union’s standard lending criteria:
• Offer only valid on 5-year closed terms mortgages. • Available on purchase, switch, refinance, and renewal.
• Excludes commitments of greater than 120 days and construction mortgages.
• Minimum Beacon Score of 680.
• Total Debt Servicing Ratio of 40% or less.
• Maximum loan-to-value of 95%; excludes cash back and cannot be combined with any other offer.
• Offer may be changed or withdrawn at any time without notice.
50% off Chequing Account Package:
• The Home Owner Bundle offer provides you with your choice of Chequing Account:
• Your Electronic Chequing. • Your Chequing 15.
• Your Chequing 40.
• The monthly discount of 50% is directly applied to your Momentum Savings Account.
Low Interest Line of Credit:
• All Line of Credit applications are subject to Eagle River Credit Union’s standard lending criteria:
• Interest rates are based on applicants Annual Income. • Beacon Score.
• Total Debt Servicing Ratio.
• Minimum monthly payment is 3% of the balance.
Monthly Momentum Savings Plan:
• Initial deposit will be made at the time of closing the mortgage. • Subsequent deposits will be automatically transferred from members
Chequing Account to their Momentum Savings Account each month. • Minimum monthly deposit of $200 is required.
• Interest of 0.75% is paid on the last day of each month providing that there are no withdrawals or transfers made from the account.
This Bundle Is Right for You If:
• You desire a Low Interest Mortgage of 2.49% for a 5-year term
• You want the security of being able to access additional funds through our Low Interest Line of Credit
• You want the security of knowing that each month you are saving for the future with our Monthly Momentum Savings plan with 0.75%
interest.
