Membership and how it works
To get a mortgage from a credit union, you typically need to become a member first, which usually just means opening a small share account. This is a quick process and doesn't require you to move all your banking there.
Provincial regulation differences
Ontario credit unions are regulated provincially rather than federally, which gives them some flexibility that federally regulated banks don't have, such as the ability to offer mortgages with amortizations longer than the federal stress test rules typically allow.
- Provincially regulated with some added flexibility
- Membership required, usually a simple process
- Can sometimes offer longer amortizations than banks
Flexibility for unique financial situations
Credit unions often have more personalized underwriting, which can help borrowers with self-employment income, new immigrants building credit history, or those with past credit challenges who don't fit standard bank criteria.
How to access credit union mortgages
Some credit unions work with brokers while others require you to apply directly through their branch. Your broker can tell you which credit unions in your area are broker friendly and worth considering for your situation.
Frequently asked questions
- Do I need to move my banking to a credit union to get a mortgage there?
- No, you typically just need a small membership share account, not your full banking relationship.
- Are credit union mortgage rates competitive with banks?
- They can be very competitive, and the flexibility offered sometimes outweighs small differences in rate for certain borrowers.
- Is my money safe with a credit union?
- Yes, deposits at Ontario credit unions are insured, though the insurance framework is different from the federal deposit insurance that covers banks.