New Canadian record-low rate not available to brokers

The credit union offering a record-low mortgage rate isn’t offering it to broker partners, despite interest within the channel.

New Canadian record-low rate not available to brokers
The credit union offering a record-low mortgage rate isn’t offering it to broker partners, despite interest within the channel.

“This is a perfect opportunity to approach your clients who have 18 months left on their mortgage and are in a higher rate (well, anything will be a higher rate) when meridian releases this via the broker community (which I expect it to),” Jake Abramowicz of Mortgage Edge wrote on MortgageBrokerNews.ca.

However, Diane Medeiros, manager of media and stakeholder relations told MortgageBrokerNews.ca that the rate is only available through the branch network.

Meridian Credit Union, the largest CU in Ontario, is offering an 18 month fixed-rate mortgage at 1.49 per cent, stoking the fire of an already heated rate war.

It’s the lowest posted mortgage rate in Canadian history.

"With this mortgage offering, we will be helping Ontarians to pay off their mortgages sooner while saving money in interest costs,” Bill Whyte, chief member services officer for Meridian said in an official release.  “This is just another example of Meridian having our Members’ backs."

Credit unions have been earning a growing chunk of market share.

“For all current mortgages on homes that were purchased during 2014 up to the time of the survey, 61 per cent were obtained from a bank,” CAAMP’s fall report states. “Mortgage brokers had a 31 per cent share. Credit unions were the source for six per cent of these mortgages, followed by two per cent from life insurance or trust companies.”

Of course, many credit unions deal within the broker channel.

Currently, Meridian’s lowest five-year fixed rate is 2.75 per cent.

“As a responsible lender, Meridian recognizes there is no cookie-cutter approach to selecting a mortgage solution,” Whyte said. “In addition to this 18-month mortgage offering, Meridian offers a full suite of mortgage options including fixed, variable, mortgages for business owners and construction mortgage solutions.”