Home Equity Loan

Equity is the difference between the current market value of the property and the outstanding payment amount on the mortgage.

Requirements:

• This loan is for Members with an existing Mortgage at Eastern Credit Union, a paid off mortgage or a mortgage at another financial institution.
• This loan is applicable to both house & land owners.
• Members with Mortgages elsewhere must transfer their mortgage to Eastern Credit Union.
• Members with mortgages outside and transferring to Eastern Credit Union must provide ALL relevant documents for mortgages.
• Member must have 10% of request on unencumbered shares.
• Loan should not exceed 80% of the equity (the difference between the current market value of the property and the outstanding loan balance or the original payment amount for home).
• This loan will be for a maximum of 25 years or when a member has reached 60 years (the lesser of the two)
• Loan can be used for personal expenses- debt consolidation, home repairs, vehicle purchase, tertiary education, medical expenses and personal investment (equities, fixed deposits, Money Market)
• Loan period is for a minimum of 5 years.
• The loan period can be equal to the outstanding period for mortgage (e.g. If your current mortgage is for 15 years and 5 years has been paid, the home equity loan can be for a period of 10 years).
• Interest Rate of 0.75% per month on the reducing balance method.
• Member must provide current valuation of property from one of our approved valuators.
• Invoices and/or estimates must be provided.
• All other Lending Criteria apply.

Required Documents:

• Agreement of sale / purchase
• 2 forms of identification per applicant
• Copy of mortgage, deed or title deed to the property / certificate or title
• Deed of lease (if leasehold land)
• Valuation report
• Bank statement reflecting credit and loan balances
• Credit Union statements reflecting shares, deposit and loan balances
• WASA clearance certificate
• Copies of up to date receipts of lease rental, Land and Building taxes and WASA rates.

Approved Valuators: