Meridian Credit Union Mortgage Review for 2024

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Alexandre Desoutter updated on 27 March 2023

With house prices dropping from their 2022 peaks, it might be the time for you and your family to get on that housing. If you're looking for the right loan, Meridian Credit Union offers a number of great products that fit a wide range of needs. 

Getting a mortgage should not feel preparing for an exam, and with Meridian it doesn’t have to. As a credit union, Meridian is owned by its members and does not operate on a profit basis, so you can rest assured you are getting a fair deal. In this review, we will walk you through Meridian mortgage rates, the mortgage products it has to offer, how it compares to the competition and how to get started. 

Meridian mortgage key takeaways

  • A large variety of different mortgage products
  • Competitive interest rates
  • Great customer service

Meridian Credit Union Review

Meridian Credit Union was originally formed in 2005 after the merger of Niagara Credit Union and HEPCOE Credit Union. Subsequently expanding in 2011, Meridian enlarged its network of branches, number of members and the total number of assets under its management after amalgamating with Desjardins Credit Union. Meridian is run out of St. Catherine’s, Ontario, and is the second largest credit union in Canada, employing over 2,000 people in 95 branches while serving a broader community of 375,000 members. They offer a wide array of products and services, including but not limited to the following:

  • Mortgages
  • Insurance
  • Bank accounts
  • Credit cards
  • Lines of credit
  • Business and commercial lending
  • Wealth management and investing

When entering into a financial obligation such as a mortgage, it is essential that you do what’s best for you and your family. Here are some of the pros and cons about getting a mortgage with Meridian Credit Union:

Pros

  • Great customer service that will help deal with your extenuating circumstances in order to get the best mortgage deal available.
  • A range of different mortgage products available for a range of different needs.
  • A credit-union, which does not function on a for-profit basis.
  • As a credit union, passing a mortgage stress test is not a requirement because credit unions are not federally regulated.

Cons

  • Meridian’s network of branches is based exclusively in Ontario.
  • Other lenders have more competitive interest rates than Meridian

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What types of mortgages are available from Meridian Credit Union?

Like most banks, Meridian Credit Union offers both fixed and variable rate mortgages. What makes them comparatively unique is that they offer four other kinds of mortgage products to suit the unique needs of their clients. You’ll find posted below is a comprehensive breakdown of each type of mortgage product.

Fixed rate mortgage

A fixed-rate mortgage has an interest rate that remains the same for the duration of your mortgage term, and gives consumers the ability to plan in advance without having to worry about market fluctuations. The most common term length for consumers is 5 years, and at Meridian, the rate is currently pegged to 6.29 %.

Variable rate mortgage

A variable rate mortgage will allow consumers to benefit if interest rates fall, but they also open themselves up to the possibility of paying more should they go up. Even if markets fluctuate though, your monthly payments will remain the same, it is just the proportion of them allocated to paying off interest that will change.

Meridian hybrid mortgage

A hybrid mortgage combines a traditional mortgage deal with a loan, taking your future earning and borrowing potential into account. This means that if you are starting a new career and your income increases sufficiently to afford the mortgage, what was previously a loan will convert to a mortgage. Under Meridian’s conditions, you can borrow up to 80% of the purchase price of your house, with the loan accounting for a maximum of 60% and the mortgage portion 20%. It's a competitive deal for those who have just obtained Canadian citizenship, those working in the trades or recent graduates.

Meridian self-employed mortgage:

Getting a mortgage while self-employed or as a small business owner can be tricky, so Meridian offers a specially tailored product to fit these needs. So long as you can demonstrate two years worth of sound financial statements and income, you should be eligible provided you have enough for a large down payment and a decent credit score.

Meridian Flex Line mortgage

A Meridian Flex Line Mortgage combines both a mortgage and a home equity line of credit (HELOC). It allows you to borrow anywhere up to 80 % of your home’s value and pay the balance off when it's convenient for you. Your credit limit will increase the more of your mortgage balance you pay. This option can be added to normal fixed or variable rate mortgages, and can be helpful for addressing expenses such as home renovation costs without having to go through a lengthy refinancing process.

Meridian Friends and Family mortgage

A Meridian Friends and Family mortgage allows you to split your mortgage costs with up to four different people, only one of whom needs to live in the property. The property will have more than one owner, there are numerous established legal agreements you can come to before beginning the process in order to smooth over any conflicts that might arise.

What are Meridian Credit Union’s rates?

At the time of publication in early 2023, Meridian Credit Union offers a series of different variable rate mortgage products for a five year term ranging between 6.25-6.7% as a base rate. Here are their current fixed rates, but keep in mind that interest rates are dynamic and can change frequently. For up-to-date data it's important to check mortgage rates or speak with mortgage broker.

Mortgage TermInterested Rate
6-month convertible
6.79%
1-year closed
5.89%
2-year closed
5.89%
3-year closed
5.89%
4 year closed
5.99%
5-year closed
6.29%
5-year closed high ratio
6.29%
7–year closed
6.59%
10-year closed
7.09%
Meridian mortgage interest rates

How do I apply for a Meridian Credit Union mortgage?

To apply for a mortgage with Meridian Credit Union, you can start the process online, over the phone at 1-866-592-2226 or in person! If you are based in Ontario, try dropping in to a local branch to speak to a specialist. There are branches throughout the province, with 14 of them in Toronto alone.

Qualifying for a Meridian mortgage usually takes just four steps.

Step 1: Get yourself pre-approved - Talk to a broker to find out the maximum amount you could borrow as well as what makes the most sense for you and your finances. Meridian will then make its own calculations on how much you could qualify for based on your income, employment status and credit score. You can then begin the house-hunt knowing your budget.

Step 2: Find the right home - Find your dream home, and do so with the reassurance of having a pre-approval letter in hand so you can make that initial offer go just that little bit more smoothly. But be sure to arrange a home inspection before you do so — otherwise, you are all good to go!

Step 3: Apply for the mortgage - Upon applying, a dedicated mortgage specialist will examine your financial information and the home you are looking to buy. You will then come to an agreement about the details of mortgage which will should include the following:

  • Fixed, variable or high ratio
  • Interest rate
  • Length of the mortgage term
  • Amortization period
  • Payment frequency

Step 4: Finalize your mortgage - If you’ve found the right home and mortgage has been approved, there are just a couple of final details you’ll need to compile and submit before everything is finalized:

  • Valid identification
  • Confirmation of income
  • Bank information
  • Lawyer information
  • Copy of the Purchase Agreement
  • Copy of the MLS listing

Once this is all done, you are ready to close your deal on your new home!

Want to see how Meridian compares to the competition? It makes sense to shop around when making as large a decision as a mortgage.

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Why choose Meridian for your mortgage? 

Meridian Credit Union offers a number of features that set it apart from the competition. Here is a breakdown of what they are:

  • Meridian Prepayment Options: Meridian offers different kinds of prepayment options that allow consumers to pay their mortgages off sooner. These include lump sum prepayments of up to 20% of your mortgage with no hidden penalties and increasing your monthly mortgage payments. All in all, these features allow you to come to the end of your term faster so you can pay less interest.
  • Meridian Mortgage Protection Insurance: This insurance product ensures you can take on a mortgage with the peace of mind that if anything happens to you and your earning potential, your family can remain in your home. This bespoke product allows you to insure your mortgage against death, critical illness, disability and loss of job. Charges are payable monthly alongside your mortgage payments with rates depending upon the size of your loan, your age and the type of coverage you want.
  • Meridian Skip-A-Payment: This feature allows you to skip one mortgage payment every twelve months. While you will still incur interest for the period, it gives you the flexibility and peace of mind to deal with large one-off expenses or other unexpected events that might weigh heavily on your finances such as job-loss, injury, or death.
  • Meridian Payment Schedules: With Meridian you will have the ability to choose how often you wish to pay your mortgage. Options range between weekly, bi-weekly, monthly and bi-monthly. Usually the shorter amount of time between payments, the less interest you have to pay over the course of your mortgage. This means that for those with a salary that permits it, an increased frequency of payments can be a great way of obtaining additional savings.

What are the Meridian Credit Union mortgage fees and penalties?

Like most other lenders, Meridian Credit Union charges a fee in the event that you break your mortgage before your term is up. This is determined in one of two ways pending on what type of mortgage you have.

  • If you have a variable mortgage, you will just have to pay three months interest.
  • With a fixed rate mortgage your fee is determined by a method referred to as the ‘Interest Rate Differential’ or IRD. This is calculated by finding out the difference between your current mortgage rate and the posted mortgage rate with a similar time remaining at the time you trigger the break. The difference between the two of them is then multiplied by the amount of time left on your mortgage, usually in months, to calculate the IRD amount. 

How much can I borrow with Meridian?

To determine how much you can borrow from Meridian Credit Union, you’ll need to have a clear idea on your income after tax and your expenses. Think of breaking them into two columns and then methodically listing them like this:

Income

  • Salary
  • Bonus
  • Commissions
  • Investment income
  • Rental income

Expenses

  • Transportation
  • Groceries
  • Insurance
  • Childcare
  • Clothing
  • Credit card debt
  • Travel
  • Cell phone and internet

Once you have this information in order, bring it to a Meridian Credit Union mortgage specialist and they will help you determine the exact amount you can borrow. When reviewing your mortgage, they will take the following metrics into account:

  • Gross Debt Service Ratio: No proportion larger than 32% of your gross annual income should go towards paying your housing costs (mortgage principal and interest costs, plus property taxes, heating costs and when applicable, 50% of condo fees).
  • Total Debt Service Ratio: No proportion larger than 40% of your gross annual income should go towards paying your housing costs in addition to your other household expenses (including credit card, line of credit and loan payments).
  • Canada Stress Test: The Government of Canada provides a mortgage stress test which is designed to answer the following question, “Could you still afford to pay your mortgage if interest rates went up?”
  • Down payment: Generally speaking, when buying a property for under $500,000, you should plan to come up with a down payment of approximately 20%. If this is not possible, you will need to purchase mortgage default insurance. With mortgage default insurance, loans may be available with just a 5% down payment. For properties above $500,000, 10% is the minimum on the amount of the loan above that threshold.

This is how that works:

Property price5% down payment10% down paymentNeeded for down payment
$400,000
$20,000-$20,000
$800,000
$25,000$40,000$65,000
Minimum down payment

If you subtract the down payments from the total cost of the home, you get an idea of how much each buyer can borrow, calculated solely in relation to the price of their house:

If you would like more information on what you might be able to afford, try using our free mortgage calculator. Meridian also makes a mortgage payment calculator available on its website.

mortgage calculator medidian

How do I contact Meridian Credit Union?

Contact Meridian Credit Union by phone or in person. You may visit a local branch in Ontario or give them a call at 1-866-592-2226.

It is also possible to request a call from an agent or book an appointment through Meridian's website. An initial meeting takes under an hour.

contact meridian cu mortgage form

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Alexandre Desoutter
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Alexandre Desoutter has been working as editor-in-chief and head of press relations at HelloSafe since June 2020. A graduate of Sciences Po Grenoble, he worked as a journalist for several years in French media, and continues to collaborate as a as a contributor to several publications.

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