Motusbank Mortgage Rates & Reviews
motusbank Background
motusbank is a subsidiary of Meridian Credit Union, and was officially launched on April 2nd, 2019. It operates as a federally chartered online bank, meaning that the only way to access the bank’s offerings is online. motusbank does offer a variety of services to its customers, with bank accounts, mortgages, lines of credit, investment accounts, and GICs. motusbank deposits are protected by the Canadian Deposit Insurance Corporation, and motusbank is backed by Meridian Credit Union, one of the largest credit unions in Canada.
motusbank Fixed Mortgage Rates
A fixed rate mortgage from motusbank will provide you with peace of mind, knowing that no matter what happens to motusbank mortgage rates, you will still have the same rate for your entire term. Because of this, fixed mortgages are very popular with first time home buyers, who value the certainty it gives them, especially without having substantial equity built up over time. The most popular fixed rate mortgage terms are the 5-year fixed rate mortgage and the 3 year fixed rate mortgage. Both of these terms allow you to not worry about renewing your mortgage constantly, which many homebuyers value. When getting a mortgage with motusbank, if you get pre-approved for a mortgage, you will keep that mortgage rate for up to 90 days before purchasing, even if rates rise during that time.
| Term | motusbank Rate | Canada's Lowest Rate |
|---|
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.
motusbank Variable Mortgage Rates
A motusbank variable rate mortgage will move alongside the motusbank prime rate, meaning that this can be a good option if you expect the prime rate to fall or remain the same over your term. Although your motusbank mortgage rate will fluctuate, your monthly mortgage payments will still remain consistent, with the only change being how much of your payments go towards interest. If your mortgage rate rises, more of your payments will go to interest and less to principal, while if it falls, more will go to principal payments and less to interest.
| Term | motusbank Rate | Canada's Lowest Rate |
|---|
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.
motusbank Mortgage Break Penalty
When you decide to break your mortgage early, which may be to access equity, sell your home, or to lock in a better rate, you will incur a mortgage break penalty. This penalty will be the following, depending on what type of motusbank mortgage you are getting:
| Bank or Lender | Variable Rate Mortgage | Fixed Rate Mortgage |
|---|---|---|
 | 3 Months’ Interest | Greater of 3 Months’ Interest or the IRD amount |
The IRD is a calculation that is common across all mortgage lenders to determine your mortgage break penalty. The way it is calculated is by determining the difference between the posted mortgage rate for the time remaining on your term, and your current mortgage rate. This difference is then multiplied by how long is remaining on your mortgage to get your IRD mortgage break penalty.
To see how much you can expect to pay in prepayment charges, utilize the motusbank mortgage penalty calculator below:
motusbank 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. 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 motusbank's current interest rate for a 3-year fixed rate mortgage?
How is my mortgage penalty calculated?
motusbank HELOC
A motusbank HELOC allows you the ability to get a lower interest rate loan, through securing the loan on your property. As well, a HELOC will allow you to have access to more credit than normal personal loans or lines of credit, meaning it can be used for almost anything. Common HELOC uses include:
- To perform a home renovation,
- To make a large purchase,
- Covering unexpected expenses, and
- For education costs
With a HELOC, you are able to apply and do not need to take out your balance until you need it. You will only owe interest on the amount that you use, while you also will have flexible payment options, including paying just the interest amount. To use your HELOC, you can transfer funds to your online bank accounts or withdrawal through an ATM. For payments, interest will come out of your account each month, and you have the option to set up regular payments.
motusbank Friends & Family Mortgage
This product will allow you to purchase a home alongside your family, which can help you to afford a home in competitive and pricey housing markets. In total, a maximum of 4 people can go on the mortgage, with each person being eligible even if they are not related to you or married. This can especially be a helpful product if you need your parents assistance to purchase a home, are going to live in and own a property with family or friends, or are not able to qualify by yourself but still want to achieve the home buying dream. The Friends & Family mortgage will work with any motusbank mortgage, allowing you the flexibility to pick the term and mortgage options that best suit everyone's needs.
motusbank Mortgage Features
motusbank Payment Schedule
motusbank offers you the flexibility to choose a payment schedule that matches your life and work pay schedule, with weekly, bi-weeky, semi-monthly, and monthly payment options. When possible however, choosing more frequent payments such as weekly payments will allow you to pay off your mortgage sooner with less interest, because you are reducing your principal balance more often.
motusbank 20/20 prepayment options
You are able to prepay up to 20% of your original mortgage balance every year without incurring a mortgage prepayment penalty. This will allow you to pay down your mortgage sooner, and will save you interest over your mortgage lifetime. You will also have the ability to increase your monthly mortgage payment by 20% each year, which will help you pay down your mortgage sooner as well. With each prepayment option, all of your additional payments will go towards your mortgage balance, which makes these options very appealing, especially if you have money left over.
motusbank Skip-A-Payment
Every calendar year, you will be able to skip a full month's worth of mortgage payments. This will allow you to have extra breathing room, especially in the event of an unexpected expense, job loss, or emergency. Considering that your interest for the period(s) will be added back to your principal mortgage balance, this feature should only be used if you cannot meet your mortgage payment.
Contacting motusbank
Since motusbank operates as a digital bank with no branch locations to meet with a representative at, you will need to connect with someone virtually. This can include speaking to a representative through the member service line, where you can speak to someone at 1-833-696-6887 from 8am to 12am. As well, you are able to submit an online form with your request, which can include wanting to apply for a mortgage, getting locked out of your bank account, or wanting to speak with an advisor, among many other options. Finally, motusbank also has a communication platform where you are able to get advance notice about changes to any rates via email, to help you stay more informed.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
- Financial institutions and brokerages may compensate us for connecting customers to them through payments for advertisements, clicks, and leads.
- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.