Meridian makes a splash with 1.49 interest rate

Ontario credit union offers low rate on an 18-month mortgage

By Mark Schadenberg

A credit union is owned by its members, so when Meridian recently announced a 1.49% interest (fixed) rate for 18 months, I'm sure all 250,000 (plus) members from their approximately 70 branches were turning their heads.

I would think all home-buying consumers should at least investigate this opportunity.

If a deal sounds too good to be true, should we speculate on this Meridian offer? 

The keys are simple. Like all mortgages you must be able to qualify for the posted Bank Of Canada 5-year fixed rate because after 18 months you will be back to your nearest Meridian branch to negotiate another mortgage. Qualifying for a mortgage is also based, of course, on your credit or beacon score, your employment status, your family's net income, and the down payment you possess.

Meridian's microscopic interest rate offer has been in effect since April 9.

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"With this mortgage offering, we will be helping Ontarians to pay off their mortgages sooner while saving money in interest costs,” said Bill Whyte, Chief Member Services Officer for Meridian on the company's website. “This is just another example of Meridian having our members’ backs."

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Just for fun, I've created a chart which notes how your payments decrease as your interest rate is lowered. Assuming you need to be in a good financial position to qualify for the Meridian deal, I'm using $250,000 as the mortgage amount and 20-year amortization. Watch how both the payment amounts change and the amount still owed after 18 months also changes.

Rate                      Monthly Payments                Amount Still Owed

1.49%                $1,205.21                              232,807

2.59%                $1,335.75                              234,575

2.99%                $1,385.24                              235,186

3.49%                $1,448.61                              235,926

4.99%                $1,648.51                              237,987

5.99%                $1,789.64                              239,231

Keep in mind, if you can successfully negotiate the 1.49 rate, the next question will be what will interest rates be at the end of October in 2016?

In Woodstock, Meridian can be reached at 537-8194 or drop into the branch at 396 Dundas Street.

Meridian is considered Ontario's largest credit union.

LINKS:

www.meridiancu.ca

http://www.bnn.ca/Video/player.aspx?vid=588640

http://www.thestar.com/business/real_estate/2015/04/09/a-new-mortgage-rate-low-149.html

If you're in the house-buying market, contact me:

Mark Schadenberg, Sales Representative

Senior Real Estate Specialist (SRES designation)

Royal LePage Triland Realty

757 Dundas St, Woodstock

www.wesellwoodstock.com

(519) 537-1553, cell or text

Email: mschadenberg@rogers.com

Twitter: markroyallepage

Facebook: Mark Schadenberg, Royal LePage Triland

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