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No need to put dreams of owning a home on hold with Meridian’s first-in-market Hybrid Mortgage

2020-10-14 10:40:00 AM

An innovative loan and mortgage mix eases path to home ownership
 
Toronto (October 14, 2020) Meridian, Ontario’s largest credit union and second largest in Canada, is offering a first-in-market mortgage solution that can shorten the timeline of buying a dream home from sometime in the future to now, especially for young adults just starting out. The latest addition to Meridian’s full suite of mortgage products, the Hybrid Mortgage, offers increased purchasing power with affordable monthly payments through an innovative, unique structure.
 
“Even with a 20 per cent down payment, purchase options for first-time home buyers can be restricted with conventional mortgages, especially for young professionals and recent graduates who may be starting their careers and already have other financial obligations like student loans,” says David Moore, Chief Marketing Officer and Senior Vice President Retail Banking, Meridian. “Meridian’s Hybrid Mortgage is a creative solution for Members who are just starting out on the path of home ownership, so they don’t need to put their dreams for the future on hold.”
 
The Hybrid Mortgage consists of two components: a conventional mortgage (interest and principal repayment) and a hybrid loan (interest only repayment). The total amount borrowed can be up to 80 per cent of the purchase price of the home with the larger component structured as the interest-only Hybrid loan (60 per cent) and the smaller component as the conventional mortgage (20 per cent).
 
To be eligible for a Hybrid Mortgage, Members must have access to available resources for a 20 per cent down payment. The maximum amount on the hybrid loan must equal 60 per cent of the purchase price. The minimum amount on the mortgage product must equal 20 per cent of the purchase price. Other key criteria will also be applied.
 
The Hybrid Mortgage is designed with the intention that, over time, new homeowners can move from the Hybrid to a standard mortgage as their financial capacity deepens. To assist them along their financial journey as homeowners, they can rely on Meridian’s mortgage experts who work closely with Members to help ensure they are well informed about the financial realities of home ownership, including affordability guidelines and smart borrowing practices.
 
“This new mortgage offering complements our robust suite of products that are designed to be accessible, affordable, adaptable and meet the unique needs of our Members,” says David. “Appreciating the unique challenges many potential homebuyers are facing now, we looked for a way to help young Ontarians keep their hopes and dreams on track.”
 
The Hybrid Mortgage will be available through Mobile Mortgage Specialists and branch channels. For more information about how to take advantage of the opportunity to get further along the path to homeownership now, please visit your nearest Meridian branch or visit our site for more information.
 

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About Meridian
With more than 75 years of banking history, Meridian is Ontario’s largest credit union and the second largest in Canada, helping to grow the lives of 370,000 Members and customers. Meridian has $26 billion in assets under management (as at June 30, 2020) and delivers a full range of financial services online, by phone, by mobile and through a network of 92 branches across Ontario, and business banking services in 15 locations. Meridian Members also have access to THE EXCHANGE® Network, with more than 3,600 no-fee ABMs across Canada and 500,000 ABMs in the United States. For more information, please visit: meridiancu.ca, follow us on Twitter @MeridianCU or see our Facebook site.
 
Media Contact
Teresa Pagnutti
Senior Manager, Public Relations
Meridian
teresa.pagnutti@meridiancu.ca; 416-275-3816