FirstOntario Credit Union Offers "No Asterisk" Mortgage As Big Banks Flip Flop on Discount Rates

FirstOntario Credit Union announces flexible 2.99% five-year mortgage

HAMILTON, ON, March 9, 2012 /CNW/ - FirstOntario Credit Union, one of Canada's leading customer-owned financial cooperatives, today announced a five-year fixed rate mortgage at 2.99%, effective immediately. The offer comes as other financial institutions introduced similar rates this week that include more restrictions on prepayment and payout options that make them less attractive than a standard mortgage.

"At FirstOntario, the financial future of our members is not a game," said Dave Schurman, Executive Vice President and Chief Operating Officer, FirstOntario Credit Union. "We are committed to providing the lowest possible, flexible rate to help our customers reduce mortgage debt and become debt-free sooner, with no special conditions or smoke and mirrors."

Canada's federal government recently handed down new mortgage regulations to force banks and other financial institutions to revise the mortgage penalty disclosures they provide to consumers. Compliance will be monitored by the Financial Consumer Agency of Canada starting in November of this year.

"The restrictions that come with many recent mortgage offerings by the big banks fly in the opposite direction of new federal government measures," said Schurman. "FirstOntario has always been transparent with our Members. We don't use mortgage promotions to lure potential customers and then upsell them."

The new mortgage offer comes with standard FirstOntario features including accelerated payment options. FirstOntario recently announced the launch of an industry-leading $25 flat-fee/unlimited transactions business account to help small businesses save money and manage cash flow. They also offer a full suite of personal banking services including free chequing accounts with no monthly charge, no minimum balance and unlimited deposits, withdrawals and bill payments.

Canada has the world's highest per capita membership in the credit union movement, with more than 10 million Canadians and small business owners - roughly one-third of the Canadian population - presently being served by the credit union/caisse populaire system. Credit unions provide the same products and services expected from a financial institution but with a personal, friendly touch and a commitment to invest back in the communities in which they operate. Credit unions differ from banks and other financial institutions in that the members who have accounts in the credit union are owners of the credit union and thus have a voice.

About FirstOntario Credit Union
In business since 1939, FirstOntario Credit Union has more than $2.9 billion in funds under management, serves over 85,000 Members and offers a full suite of banking products including daily banking, mortgages, lines of credit, loans and investments. FirstOntario operates 21 full-service branches and two satellite branches serving 13 communities across the Hamilton, Halton, Niagara, Haldimand/Norfolk and Oxford regions and Membership at FirstOntario is open to anyone. FirstOntario is a proud advocate of the communities we serve and supports many important community organizations. FirstOntario is a founding sponsor for Hive Hamilton, and supports Co-operative Young Leaders (CYL) and youth at risk through Soupfest. FirstOntario also offers a scholastic bursary program and a microlending program in the Hamilton and Niagara regions. For more information please visit: www.FirstOntarioCU.com and www.MyOwnBank.ca

For additional information or to schedule an interview, please contact:     

Rachael Collier, Pilot PMR
416-462-0199 Ext. 31
[email protected]

Edward Logie, FirstOntario Credit Union
1‐800‐616‐8878 Ext. 269
[email protected]