motusbank mortgage review

If you’re busy and struggling to find time to think about securing a mortgage, you’re not alone. Now, with motusbank, you can shop for a mortgage plan online and find one that’s customizable to your financial needs.

motusbank, one of the youngest banks in Canada, is owned by Ontario’s largest credit union, Meridian. motusbank competes with other online banking services and offers mortgages through an entirely online process.

The obvious advantage of a motusbank mortgage is its convenience. Mortgages can be a complicated matter and often require extensive meetings with mortgage specialists.

motusbank eliminates this time-consuming process by offering low mortgage rates and the convenience of purchasing a mortgage online.

What types of mortgages does motusbank offer?

motusbank offers the following mortgage terms and interest rates:

• 3 year fixed mortgage with a 7.08% interest rate
• 5 year variable mortgage with a 7.27% interest rate

What makes motusbank unique?

The ability to purchase all financial products and services directly online sets motusbank apart from traditional banks or credit unions. While the idea of purchasing mortgages online may seem foreign to some, it can be a time-saver for others. People that wish to look into securing a mortgage online with motusbank will be glad to know that it offers competitive low rates.

Do I qualify for a motusbank mortgage?

A list of eligibility criteria for a motusbank mortgage is not available on its website. Typically, to qualify for a mortgage in Canada, you must be the age of majority in your province or territory and be a citizen or resident of Canada. You’ll also need to show proof of income to demonstrate that you can afford mortgage payments.

Unfortunately, the only way to know if you qualify is to apply. Before submitting an application, consider the following points that affect your chance of getting approved.

Factors that might affect your ability to get a mortgage

• Debt to income ratio. When your outstanding debt is low, it’s easier to qualify for a mortgage.
• Down payment. Individuals who make a large down payment are more likely to qualify for a mortgage.
• Size of mortgage. The amount of money you’re applying for affects whether you’re qualified. The lower the amount, the better.
• Credit score. Your credit score plays a big role in your mortgage application, although lenders vary in the weight placed on applicants’ credit scores.

What are the benefits of getting a motusbank mortgage?

• Convenience. Purchasing your mortgage online can save you a lot of time and is very convenient.
• Low rates. motusbank offers competitive low fixed and variable mortgage rates. However, if you have excellent credit, you might get a lower rate elsewhere. A mortgage broker like Perch or Loans Canada can help you compare offers from different lenders.
• No meetings. You don’t need to have in-person meetings with mortgage specialists to go over your financials and mortgage options. Instead, you can meet with a motusbank mortgage representative over the phone. You can also submit queries via an online contact form.
• 20/20 prepayment privileges. motusbank allows you to increase mortgage payments by 20% of the original loan amount annually without any penalties.
• Legitimacy. While motusbank may be new to the online banking world, it is backed by Meridian, the largest credit union in Ontario and the third largest in Canada.
• Friends & family. motusbank lets you pool resources with others to collectively purchase a mortgage. Qualify for a larger, shared home than you could get individually.
• Skip a payment. Miss one payment annually without penalties.
• Flexible repayment schedule. Choose between weekly, bi-weekly, monthly, semi-monthly, accelerated weekly or accelerated bi-weekly payments.

What to watch out for

• No in-person service. Meeting in person can sometimes be more efficient than closing a deal online. Motusbank is a fully online bank, so you can’t visit a local branch in person to expedite the process of getting a mortgage.
• New bank. motusbank was founded in 2018 and isn’t as established as Canada’s Big Banks and a some other digital banking institutions.
• Potentially better rates eslewhere. The average mortgage rate in Canada falls between 5.51% and 7.39%. The rates advertised on motusbank‘s website fall at (and above) the high end of this range. If you have excellent credit, you might qualify for lower mortgage rates elsewhere.

Eligibility requirements

• Be the age of majority in your province or territory
• Be a citizen or resident of Canada

Required documentation

• Personal information. You’ll be required to provide personal information, such as your name, phone number, email, date of birth and government-issued ID among other details.
• Credit report. motusbank will ask for consent to pull your credit report to assess your creditworthiness.
• Proof of income. In order to verify your income, motusbank may request pay stubs, letters of employment or other documentation that shows you earn enough to repay a mortgage.
• Other financial information. You may be asked to provide details of outstanding debts, assets and other financial information.
• Property information. motusbank will ask for details of the property you want to purchase.

How to apply

If you’re ready to apply for a motusbank mortgage, follow these simple steps:

1. Visit motusbank‘s website. Select the Accounts dropdown at the top of the page, then select Mortgages.
2. Select Apply now
3. Provide the information requested during the online application
4. Review and submit your application

I got a motusbank mortgage. Now what?

If you’ve been approved for a mortgage with motusbank, a bank representative will contact you regarding the next steps. This could entail verifying the details of the information you submitted in your application along with confirming the mortgage plan you want to enter into.

You can then specify which mortgage payment plan fits your lifestyle and budget. Choose between weekly, bi-weekly, monthly, semi-monthly, accelerated weekly or accelerated bi-weekly payments.

Compare other mortgage lenders

Bottom line

motusbank offers a convenient online mortgage application process, so you can avoid the hassle of shopping around in person for home financing. Plus, borrowers can take advantage of flexible payment schedules and a variety of penalty-free prepayment options.

Related: Learn more about mortgages in Canada