Mortgage Blog
Difference between Private Mortgage, Credit Union, Banks
December 3, 2024 | Posted by: Sarabjit Dhuna
There are few ways to get mortgage in Canada. Most commons are 1) Bank 2) Credit Union 3) Private lender. In these all-option Bank holds more than 60% of mortgages. You may feel like bank is only option to get mortgage however, Private lender and credit Union offer more flexible terms than banks.
Banks: -
Banks offers wide range of services to the public but they follow more conservative ways. Banks wants to take less risk. There are five main banks in Canada. These are all federally regulated
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TD bank
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RBC bank
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CIBC bank
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Scotiabank
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BMO Bank
Credit Union: -
Credit union main focus is on not for profit. They also offer more personalized service like bank but credit union are not more conservative like bank. They are around 750 credit union available in Canada.
Private Lenders: -
Private lenders more flexible than banks and credit unions in terms of credit score and income source. Private lenders are open to negotiate about interest rate and repayment schedule than bank and credit union.
Advantages: -
Banks
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Wide ranges of services
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Accessible across Canada
Credit Union
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More Flexible criteria than bank
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Focuses on not for profit
Private Lender
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Most flexible in terms of credit score and income source
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Negotiate interest rate, repayment schedule and often does not required Full Application
Disadvantages: -
Banks
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Focuses on For profit model
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Higher fees and less customer centric business model
Credit Union
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Limited availability across Canada
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Offers less services compare to Banks
Private Lender
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Often have Higher interest rate because They take High risk
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Offers less services compared to bank and Credit Union
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