27 Apr Vancouver City Savings Credit Union’s Lines of Credit
Review Date: January 15, 2014
Vancouver City Savings Credit Union (Vancity) is Canada’s largest community credit union. Their home equity and personal lines of credit will fit well with CashMap’s line of credit strategy. The rates are competitive, the staff was friendly, and they take pride in sharing their profits with their members and the community. For members who don’t own their home or don’t have adequate equity in home, Vancity’s personal line of credit program is very attractive. What are the drawbacks? Just one, for a home equity line of credit, you pay all closing costs.
Home Equity Line of Credit Review Details
Closing Costs: You’ll pay the registration fee and appraisal costs.
Processing Time: One to two weeks!
Other Requirements: The line of credit must be in a first position. If you have a mortgage, your Vancity line of credit will have to pay it off. Their HELOC will be your mortgage.
Annual Costs: None. You are charged life and disability insurance premium based on your balance.
Rates: Variable rate of prime plus .5 percent. The current rate is 3.5 percent. The rate is based on your credit score, your debt to income ratio and the depth of your relationship with Vanity.
Current Lowest Rates: 3.5 percent
Minimum Amount: $25,000
Maximum Amount: No limits based on your credit score, DTI and LTV ratios
Minimum Loan to Value Ratio: Total debt against the equity of your home can be no greater than 80% of home’s value.
Debt to Income Ratio: 40 percent
Term: No ending date. Always interest only.
Refinancing: Not applicable. You retain the line for as long as you own your home.
Repayment Terms: Interest only
Prepayment Period and Penalty: None
Automatic Loan Payment: Yes; however, there is no impact on the rate. You can even do direct deposit.
Overdraft Protection: Your checking account is connected to your line of credit. This will enable you to maintain a zero balance in your checking account. You can write checks from your checking account and the dollars will automatically be drawn from your line of credit.
Limits on the Number of Withdrawals: None
Cost of Line of Credit Checks: Yes, the cost is the same as ordering regular checks;
Choice of Billing Cycle: The date is established by the individual branch’s cycle. The billing date is usually 30 days after your initial funding. You have an additional 30 days to make payment.
Carrying a Credit Balance: No. For overpayments, the balance is deposited in your checking account.
Secured Personal Line of Credit
Security: Must be 100% secured; Amounts greater than $25K assets must be registered.
Interest Rate: Rate is variable using Prime plus .5% – Currently 3.5%
Limits: $5,000 – greater amount available based on ability to repay.
Fees: No closing fees or annual fees. If appraisal or registration is required, you cover this cost. Like the HELOC you will also pay life & disability premium.
Unsecured Personal Line of Credit
Note: rates and underwriting guidelines will change. This guide is a guide to assist you in asking the questions necessary to choose a line of credit that will best fit your needs. CashMap Consulting LLC makes no guarantees and as no affiliation with this or any other financial institution.
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