In Ontario, Desjardins is a credit union. Credit union is regulated by provincial government.Desjardins 和 银行的 morgage 有什么区别？ Desjardins 利率比较低， 有没有风险？
In Ontario, Desjardins is a credit union. Credit union is regulated by provincial government.
Banks are regulated by federal government in Canada.
The risk of borrowing mortgage from a credit union?
- it is not much different from a bank.
- your home is registered under your name in the 'Title'. The mortgage banks/credit unions/mortgage companies will put a lien on your home title such that you cannot sell the home without paying back the mortgage to them first. Other than that, banks/credit unions/mortgage companies do not own your home. Exception: If you don't pay the mortgage payment (i.e. default), they have the right to sell your home to get back the loan they borrowed to you. (that's the reason of having a lien on your home title).
- even if a credit union has a financial problem, other mortgage companies/credit unions/banks will buy the existing mortgage business from the problematic credit union. It doesn't affect your mortgage term until the mortgage renewal date.
That's true for banks and credit unions...it may have its own penalty. read clause carefully or ask them directly such as refinancing policy, fast pay back plan etc.