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Coast Capital offers mortgage with 30% annual prepayment

VANCOUVER - Coast Capital is upping the ante in the competition for mortgages in B.C. with a mortgage that allows homeowners to prepay up to 30 per cent annually and skip one monthly payment a year, no questions asked.


The credit union, B.C.'s second largest, is also offering a half-and-half rate priced at the mid-point between current variable and fixed rates.


Customers who find that they need the money after making an extra payment on the mortgage can withdraw a minimum $500 without laborious approvals or extra fees. Other financial institutions either charge a fee or require a much higher minimum withdrawal, Coast Capital says.


“Our research revealed that customers feel their financial lives are being controlled by their long-term mortgage debt and they are highly motivated to get out of this debt,” Laurie Ferguson, chief marketing officer, said in a news release. “But financial institutions don’t make it easy for them to eliminate their debt, while managing their ongoing financial needs, so our new mortgage product includes flexible payment and withdrawal features designed to place control back in the hands of customers.”


The credit union is sending out 30 butlers into the streets of Vancouver and Victoria Tuesday morning to launch its “You're the Boss Mortgage,” touted as the most flexible in Canada.


Thirty-eight per cent of B.C. residents have a residential mortgage and the average outstanding mortgage amount is $187,000 compared to $143,600 nationally, according to a report by the Canadian Association of Accredited Mortgage Professionals.


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