D Trent Registered User
#1

Hi I'm sorry if there's already been discussion on CU mortgages.

What are the pros and cons of a credit union mortgage.

Seeing as banks are highly competitive this weather, will each credit union always have a higher rate realistically?

Have you had or heard of good /bad experiences of someone getting mortgage through their CU?
Thank you

tatranska Registered User
#2

Never heard of them giving mortgages!

greenttc Registered User
#3

tatranska said:
Never heard of them giving mortgages!


They do give them, they are called housing loans, my credit union gives them up to 300k over 25 years. No experience of using it though

rachaelf750 Registered User
#4

I have received the following info.

I have been advised the Interest Rate would be 4.99% APR.
Interest is worked out on the remaining loan amount not the total loan amount.

You will need to take out life insurance.

I'm considering a c/u mortgage over the government loan myself.
I hope to buy next year.

GingerLily Registered User
#5

rachaelf750 said:

Interest is worked out on the remaining loan amount not the total loan amount.



Is that different to any other loan?

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Claw Hammer Registered User
#6

rachaelf750 said:

I have been advised the Interest Rate would be 4.99% APR.
Interest is worked out on the remaining loan amount not the total loan amount.

.


That is the same with every loan.

DubCount Registered User
#7

4.99% is quite high for a mortgage on your PPR

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L1011 Moderator
#8

GingerLily said:
Is that different to any other loan?


Only credit cards charge on full amount despite partial payment basically. Every mortgage recalculates interest as repayments occur

Henry Ford III Registered User
#9

D Trent said:
...Seeing as banks are highly competitive this weather....


They compete with each other, but their margins are actually pretty high.

hognef Registered User
#10

L1011 said:
Only credit cards charge on full amount despite partial payment basically. Every mortgage recalculates interest as repayments occur


Surely, also for credit cards, the interest is calculated on the outstanding balance, or am I misunderstanding you here?

L1011 Moderator
#11

hognef said:
Surely, also for credit cards, the interest is calculated on the outstanding balance, or am I misunderstanding you here?


Generally with credit cards you are charged interest on the full balance at the time of statement even if you've paid off all but a cent of it. It is only interest free if paid absolutely in full.

GingerLily Registered User
#12

hognef said:
Surely, also for credit cards, the interest is calculated on the outstanding balance, or am I misunderstanding you here?


Its calculated on the balance at a certain date each month, not the balance on the billing date. But I would agree with you that its essentially the same with a delay is all.

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Claw Hammer Registered User
#13

L1011 said:
Generally with credit cards you are charged interest on the full balance at the time of statement even if you've paid off all but a cent of it. It is only interest free if paid absolutely in full.

You pay interest on the full balance at the time of the statement until anyting is paid off it. Then it is on the declining balance. Interest is charged on the balance at all times since the last payment unless it is cleared time an i full.
Interest is never charged on money that is not outstanding.

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KKV Registered User
#14

Pro of a CU loan is you can pay more than you like to an unlimited amount. For example, i am lead to believe that with traditional banks, you only can pay back an agreed set amount over the actual repayments.


With the CU I can wander down tomorrow and pay 10k off the loan and they won't bat an eyelid. So if you're in a position to that early on, then going with the CU is a good idea. You can always look at switching it over to a 'normal' bank once you think you're gonna start repaying normally. but if you can get ahead on the loan from the word 'go', then you can knock years off the term with a bit of effort.

There are rules, the gist of it in Drogheda is that you can only borrow up to 100k. You have to have a minimum of 5% of the value of the loan in your savings, the loan is secured against the house with the CU getting a first legal charge on the property, etc.

It's called a Home Improvement Loan, as, as has been said, the CU aren't really allowed to do actual mortgages (unless that's changed in the mean time).

Claw Hammer Registered User
#15

KKV said:
Pro of a CU loan is you can pay more than you like to an unlimited amount. For example, i am lead to believe that with traditional banks, you only can pay back an agreed set amount over the actual repayments.


.


Unless you are on a fixed term interest rate with a bank you can pay down part of the outstanding balance at any time up to any amount.

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