DUCA mortgages features
Being a member-owned credit union, mortgages from DUCA come with several features to help make your mortgage easier to manage.
All DUCA mortgages are portable, meaning you can continue your current mortgage agreement even if you move homes, saving you on the cost of having to break a mortgage term early.
If you switch an existing mortgage from another financial institution to DUCA Credit Union, they'll cover up to $250 in transfer fees. They'll also ensure that the mortgage switching process is seamless.
DUCA mortgages are also re-advanceable. A mortgage re-advance allows you to borrow additional funds on your current mortgage. As long as you qualify for it and the re-advanceable amount doesn't exceed your original mortgage amount, you can use the mortgage re-advance to pay for expenses such as home renovations, repairs, or vehicle purchases.
DUCA fixed-rate mortgages
Fixed-rate mortgages give you predictable payments that won't change if DUCA's prime lending rates change. Your monthly mortgage payments will stay the same for the duration of your mortgage term. Most homeowners opt for fixed-rate mortgages because of their stability.
DUCA Credit Union offers fixed-rate mortgages from 6 months to 7-year terms. On high ratio mortgages (mortgages with less than 20% owner equity), fixed-rate terms are available from 6 months to 5 years.
DUCA variable-rate mortgages
Variable rates are pegged to prime lending rates, plus or minus a certain percentage. If DUCA's prime lending rates remain low or decrease during your mortgage term, you'll save on interest costs. If, however, prime rates rise, your borrowing costs will also increase.
DUCA offers variable-rate mortgages on both high ratio mortgages and conventional mortgages. Term lengths for variable rate loans can be either 3 or 5 years.
DUCA mortgage prepayments
Making prepayments on your mortgage is an excellent way to save on interest costs and pay off your mortgage more quickly. Open term mortgages allow for unlimited prepayments, enabling you to make lump sum payments towards your mortgage without penalty.
Closed term mortgages don't have the same level of prepayment flexibility as open term mortgages do. DUCA allows for up to 20% lump sum prepayments on the original mortgage principal, once per year, on closed term mortgages. If you go over the prepayment limit, you'll incur a prepayment penalty charge.
DUCA Credit Union also allows you to double your mortgage payment once per year. If you find yourself with extra cash flow, the double up option is a great way to pay down your mortgage quicker and save on interest.
DUCA allows you to mix and match up to four different mortgage products into one mortgage, called the Flex mortgage. You can choose to combine a variable rate mortgage, fixed-rate mortgage, or a line of credit to give you the custom mortgage solution that's right for you. The different mortgages can come in a variety of term lengths and can have either open or closed terms on select fixed rates.
A benefit of the flex mortgage is that you can take advantage of low variable rates and stable fixed rates at the same time. Combine that with varying open and closed terms, and you can give yourself a more customized prepayment schedule that aligns with your financial goals.
The More Together Mortgage
If you find yourself in a situation where you aren't financially ready yet to purchase a home, and you have friends or family who want to invest in property along with you, DUCA offers a co-ownership mortgage called the More Together Mortgage.
With DUCA's More Together Mortgage, you can have up to six people on the mortgage title. Each person on the title of the mortgage has co-ownership of the home being purchased.
With a More Together Mortgage, the combined financial resources of all co-owners can be pooled to place a larger down payment. Homeownership costs, such as mortgage payments, repairs, and property taxes, can be equally shared amongst the co-owners as well.
DUCA Credit Union recommends that before getting a More Together Mortgage, all potential co-owners create and sign a co-ownership agreement. DUCA also provides a handy checklist of considerations to make before getting a More Together Mortgage.
DUCA Home Equity Line of Credit
If you have at least 20% equity in your home, you can apply for a DUCA home equity line of credit. With a home equity line of credit, you can use the equity you've built in your home to borrow funds on a revolving credit basis.
You can borrow from and pay back funds from your home equity line of credit whenever you want, so long as you pay the minimum interest charge on outstanding balances.
Apply for a DUCA mortgage
When you're ready to apply for a mortgage from DUCA Credit Union, you can contact a DUCA mortgage specialist to get started. You can also visit your closest DUCA branch if you'd rather meet a representative in person. For other DUCA Credit Union related inquiries, you can call them to learn more about the different products and services they offer.
About DUCA Credit Union
DUCA Credit Union operates in the province of Ontario, with over 59,000 members, more than 260 employees, and 16 branches. They offer an array of savings and chequing accounts, as well as mortgages and insurance products.
Founded in 1954 by a group of Dutch immigrants, DUCA Credit Unions aims to serve its members with competitive interest rates, low fees, and personalized financial advice.
DUCA has a profit-sharing program available to all members of the credit union, paid out in the form of "bonus shares." Anyone who signs up for a DUCA financial account automatically becomes eligible for the program. The amount of profit-sharing you receive depends on how much you have paid and earned in interest with DUCA. The bonus shares you accumulate from DUCA can be redeemed for cash (following a vesting schedule), or they can be held to receive a dividend.