Alterna Savings Mortgage Rates & Reviews
Alterna Savings Background
Alterna Savings is a credit union that was originally founded in 1908 as the Civil Service Savings & Loans Society. When the Civil Service Savings & Loans Society and Metro Credit Union merged together in 2005, the combined entity adopted the name Alterna Savings. Currently with over 186,000 members and over 30 branches in Ontario, Alterna Savings is the second-largest credit union in the province, and one of the 10 largest credit unions in Canada. Alterna Savings offers a variety of financial services, including mortgages, lines of credit, bank accounts, insurance, commercial lending, and wealth management services. Alterna Savings has $6.7 billion in assets, and over $10 billion in assets under management.
Alterna Savings Fixed Mortgage Rates
A fixed rate mortgage from Alterna Savings will allow you to have the security of having the same Alterna Savings mortgage rate over your entire term. This makes fixed rate mortgages especially popular with first time home buyers who do not have existing equity from another property to put into their new mortgage. This is because any fluctuations in their Alterna Savings mortgage rate could have a much larger impact on how fast they pay off their mortgage. Out of all fixed rate mortgages, the 5 year fixed mortgage rate is the most popular. This is because it gives you 5 years of not needing to renew your mortgage, while also being a reasonable time frame where you will not have such a high mortgage rate.
| Term | Rate | Monthly Payment |
|---|---|---|
1-Year Fixed | 3.99% | $2,109 |
2-Year Fixed | 3.99% | $2,109 |
3-Year Fixed | 3.79% | $2,065 |
4-Year Fixed | 4.09% | $2,131 |
5-Year Fixed | 3.89% | $2,087 |
7-Year Fixed | 6.25% | $2,639 |
10-Year Fixed | 6.65% | $2,738 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Alterna Savings Variable Mortgage Rates
Since an Alterna Savings variable mortgage rate will fluctuate along with the prime rate, it can mean less certainty and peace of mind compared to a fixed rate mortgage. Although your Alterna Savings mortgage rate will fluctuate, your monthly mortgage payment will still be the same throughout your entire mortgage term. If your mortgage rate rises, more of your monthly mortgage payment will go to interest payments. If your mortgage rate falls, more of your mortgage payment will go towards reducing your principal balance. Because of this, a variable rate mortgage can be a great option if you believe the prime rate and mortgage rates will fall.
| Term | Rate | Monthly Payment |
|---|---|---|
3-Year Variable | 2.49% | $1,792 |
5-Year Variable | 2.55% | $1,805 |
The rates shown are for insured mortgages with a down payment of less than 20%. You may get a different rate if you have a low credit score or a conventional mortgage. Rates may change at any time.
Alterna Savings Prime Rate
The Alterna Savings prime rate is important because it is the basis that the credit union uses when making a loan for most of its products. These products include: mortgages, credit cards, lines of credit, personal loans, and HELOCs. To come to the final interest rate on the product, Alterna Savings will add or subtract a spread to the prime rate. The spread will depend on how risky the credit product is, along with how long the loan will be for, and the terms and conditions involved.
Current Alterna Savings Prime Rate: 2.45%
Alterna Savings History
Alterna Savings Mortgage Break Penalty
If you are to prepay your mortgage in full before your term is up, you will incur a mortgage break penalty. This is only on closed mortgages, and if you are to get an open mortgage, you will be able to pay down your mortgage at any time with no penalty.
For a variable rate mortgage, the penalty that you will incur will be 3 months worth of interest payments based on your Alterna Savings mortgage rate. This may mean thousands of dollars in penalties. For a fixed rate Alterna Savings mortgage, the mortgage break penalty will be the greater of:
- 3 months worth of interest payments at your current mortgage rate, or
- The interest rate differential (IRD) amount
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
The IRD amount will be the difference in interest rate between your current mortgage rate and the posted interest rate based on the time period left on your mortgage term. This difference will then be multiplied by the amount of time left on your mortgage term, to come to your mortgage break penalty.
To see how much you can expect to pay in prepayment charges, utilize the Alterna Savings mortgage penalty calculator below:
Alterna Savings Mortgage Prepayment Calculator
Are you looking to pay off your mortgage early? Or refinance the terms of your mortgage at a lower interest rate? Maybe you sold your home and purchasing a new home, in which a mortgage transfer will apply. Whatever the case, you most likely will have to pay a mortgage break penalty set by your lender. Whatever the situation, our calculator will help you determine the cost to break your mortgage so you can be confident about your mortgage decisions.
What is the remaining balance on your mortgage?
What is the term-length and type of your current mortgage?
What is your current mortgage interest rate?
If applicable, what was the rate discount you received when you signed your current mortgage agreement?
When did your current mortgage start?
Who is your current mortgage lender?
What is TD Bank's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
Alterna Savings Mortgage Features
Alterna Savings Payment Frequencies
Alterna Savings offers 4 different payment frequencies on most of its mortgage products: monthly, bi-monthly, bi-weekly, and weekly payments. This allows you the flexibility to match your mortgage payment with when you receive income, making it easier to plan and budget for your mortgage payments. When possible however, choosing a more frequent payment option will allow you to save money in interest throughout your term, considering you will be reducing your mortgage balance more often.
Prepayment options
For most Alterna Savings closed mortgages, you will have the ability to prepay up to 20% of your initial mortgage amount each year. This can be done by raising your mortgage payments by up to 100%, and by prepaying through a lump-sum payment. Prepaying some of your mortgage when you have the funds available can be a great way to help you reduce your interest costs and pay off your mortgage earlier. When you prepay your mortgage or make larger payments, you will be decreasing your principal mortgage balance. If you have an open mortgage however, you will be able to prepay as much as you choose at any time.
Other Alterna Savings Financing Products
Alterna Savings HELOC
Getting a secured line of credit from Alterna Savings will allow you the ability to utilize your home equity, without needing to refinance your mortgage. Since this line of credit will be secured by your home, you will also benefit from a low interest rate, especially when compared to lines of credit without collateral. The potential uses for a HELOC are endless, with options such as:
- Doing a renovation,
- Making a big purchase,
- Covering education costs, and
- As an emergency fund
Alterna Savings Cashback Mortgage
A cashback mortgage from Alterna Savings will allow you to take out up to 5% of your mortgage amount in the form of cash. This can be a great option for home buyers who used up all or most of their savings for a down payment on a home, and want cash back for uses such as doing a renovation, covering closing costs, furnishing the home, or even to give you added breathing room in your budget. With a cashback mortgage from Alterna Savings, you are also given the security of a fixed mortgage rate.
Alterna Savings Multi-Ownership Mortgage
With home prices across Ontario rising, home ownership is becoming increasingly difficult, especially for first time home buyers and younger buyers. The Multi-Ownership Mortgage from Alterna Savings allows you to pool your resources with others to purchase a home. This can be helpful if you are lacking the income, down payment, or minimum credit score to purchase a home alone, allowing you to purchase a home in Ontario with a loved one. With a multi-ownership mortgage, you will have the ability to choose any mortgage and term. Potential situations where a multi-ownership mortgage is most common is:
- To help an adult child purchase a home,
- To help purchase a home for elderly loved ones who are on a fixed income, and
- For loved ones who wish to pool money to purchase a home for everyone to live in
Alterna Savings Flexi-Mortgage
A Flexi-Mortgage allows you to split up your mortgage into different types of payment options and terms. The benefit of this Alterna Savings mortgage product is that it gives you more flexibility with your mortgage being split into different pieces, letting you choose different terms, if it is fixed or variable, and if it is open or closed. This allows you to customize your mortgage exactly how you want.
Alterna Savings Locations
With locations all across Ontario, including in the GTA, Ottawa region, Southwestern Ontario, and northern Ontario, finding an Alterna Savings location to meet with a representative is possible. If you are far away from your nearest Alterna Savings branch, contacting Alterna over the phone is easy, with the toll free number for the contact centre being 1-877-560-0100. As well, you can always contact your local branch directly, with more information about Alterna branches being available in the “find a branch” section of the website.
Alterna Savings Locations
| Region | Number of Branches | Towns & Cities With Branches |
|---|---|---|
| GTA | 11 | Toronto, Brampton, Bolton, Mississauga |
| Ottawa Region | 10 | Ottawa, Nepean, Pembroke |
| Southwestern Ontario | 3 | Thamesville, Wardsville, Dutton |
| Northern Ontario | 5 | Thunder Bay, Ignace, Fort Frances, Dryden, Rainy River, North Bay |
| Other Regions | 2 | Peterborough, Kingston |