Student Loan Debt Delaying Homeownership by 7 Years

The National Association of Realtors and American Student Assistance finds that the median student debt balance is $41,200, leaving millennials to delay marriage, having children, retirement savings and homeownership.

The study finds that the homeownership is delayed by as much as 7 years for millennials.

Just 20% of respondents to the survey owned a home, with the average respondent earning $38,8000 annually. Over half of those that responded to the survey had over $40,000 in student loan debt, with 79% of all respondents borrowing money to pay for their education.

The survey found that 83% of non-owners put the blame on student debt for delaying their home buying. Students who do own a home are also holding off on buying a better home because they can’t afford a higher mortgage along with their student loan requirements.

“Although some banks will approve a loan with a back-end debt-to-income of up to 50%, most won’t tolerate anything over 36%,” states Refinance Student Loans.

The data, compiled with completed surveys from 2,203 borrowers, is accurate as of April 2017. First-time home buyers is on the decline, falling from a historical average of 40% to 33% in the past three years.

Homeownership isn’t the only sacrifice of millennials, according to the survey.

Eighty-six percent of millennials have made career sacrifices, which may include staying in a position they dislike or taking a second job to repay their loans. Over half of those who responded also delayed starting a family and continuing their education due to their loan repayment requirements.

Millennials are also forgoing marriage because of debt. Forty-one percent haven’t gotten married yet because they have too much student debt.

Retirement savings is also suffering. Six-one percent of the 2,200 respondents haven’t saved for their retirement at all. Some thirty-two percent of respondents contributed a reduced amount to their retirement and were only able to contribute some of the time.

Student loan debt is up 150% over the last decade. Debt has increased by $833 billion in the last decade, swelling to over $1.4 trillion dollars in the span. Student loan debt is the second-largest expense behind purchasing a home.

Delinquent student loan payments are down 3% in the past decade.

A survey by Citizens Bank found that 36% of student loan debtors said they would not have went to college if they fully understood the student loan debt they would incur. Experts suggest that higher education is worth the investment because the debtor’s income will be higher over the course of their career.

DasCoin – The New Sheriff in Town

You may or may not have heard about the cryptocurrency called DasCoin. If not, you will soon. While it is one of the newer players in this space, it is going to take the world by storm. It will be the new sheriff in town.

If you haven’t heard about DasCoin, you probably have heard about Bitcoin. Bitcoin is a cryptocurrency meant to bring down the power base of governments’ control over money. While Bitcoin did a great job towards this end, it is not without its problems. The fully decentralized nature of this cryptocurrency has led the way for money laundering on a large scale, among other problems.

Problems with Bitcoin

The Bitcoin infrastructure is a decentralized architecture. This is a fancy way of saying there is no one person or group who controls it. Contrast this to a fiat currency of governments. Each government body via their central bank sets the rules for the currency of its respective government and its citizens. When there are improprieties within the system, the government tries to step in and enforce the rules. In the banking world, there is a concept known as Know Your Customer (KYC). Essentially, this requires bankers to get to know their clients so that when certain transactions seem out of place, the bankers should question them. This helps to catch any inappropriate activity early on. The banks are required to alert these activities to the central bank or the government.

Bitcoin has no KYC. This means there is a black hole of sorts in the architecture. While it was set up in this manner by design, the tradeoff is no governing body can step in and police the actions of its participants. Money laundering via the Dark Web has proliferated due to this.

Bitcoins mining practices have come under fire of late. The mining is done by individuals who can solve mathematical equations. Each time an equation is solved, bitcoins are mined and given to the programmer responsible for solving the equations. Each time an equation is solved, the next equation becomes a bit more complicated to solve. In the early days, anyone with a standard PC or Mac could solve these equations.

Due to the growing complexity, mining currently requires high-end computing with building-sized rooms to solve. This requirement has led developers to pool together. While on the surface, this may seem both logical and practical, it has led the Bitcoin community to suspect collusion among developers. Once this collusion occurs, it eliminates the advantage of a decentralized architecture. The collusion has no one to police it, making it somewhat worse than fiat currencies.

Contrary to what many bloggers and media outlets claim, bitcoin is not universally accepted. While the number of establishments accepting bitcoin is growing, it is not growing quick enough to become the ubiquitous replacement of fiat currencies. It does have the advantage of being the early adopter of the concept. However, due to the decentralized architecture, there is no group making a push to gain worldwide acceptance. Any establishment that signs on to accept bitcoin does so without suggestion from a sales force or group wishing to spread the concept.

Should We Revert to a Gold Standard?

Several countries were on a gold standard. This means that each dollar printed had to be backed by a certain amount of physical gold. This was certainly an improvement from earlier periods where gold coins were minted as a currency. These coins were prohibitively heavy which made transporting problematic.

Pegging paper-based currencies to gold took away the need to lug around carts of gold to make big purchases. However, these paper currencies were still on the gold standard. This prevented governments from frivolous spending with little regard for the consequences. In other words, they needed to be accountable for their spending.

One downside to a gold standard is there is a finite supply of gold in the world. While that may seem ideal to curb government spending, it suffers as populations grow and the needs of the government to serve these populations get squeezed.

The biggest problem with not having a system such as the gold standard is that governments can print money like it’s going out of style. This action debases the currency and decreases the purchasing power of citizens. This concept is inflationary and is one of the main reasons cryptocurrencies are proliferating.

Another subtle ramification of inflation is that it benefits debtors. The value of the loans is repaid with inflated dollars. In the modern world, most governments are huge debtors. For them, inflation is a godsend.

Why DasCoin?

The creators of DasCoin took all of the above factors into consideration when they developed their cryptocurrency. The infrastructure of DasCoin is what is considered a hybrid. The blockchain is a combination of decentralized and permissioned. Essentially, this means that the users of the system still have the benefits of decentralization. However, those users must be given permission to use the system in the first place. This permission-based system is done through a central body, and allowable actions are codified into the system.

This centralized approach allows DasCoin to satisfy KYC, which means governments are more likely to support the concept. When you gain government support, you can use that benefit for enforcement should the need arise. The governments are also less likely to pass laws that will adversely affect the DasCoin movement.

DasCoin has a large financial backing, and it is happening on a global scale. The creators are setting up the system to be accepted by millions of establishments right from the start. This acceptance removes the chicken-vs-egg problem that plagues other cryptocurrencies, i.e., vendors won’t adopt the currency unless they have enough consumers on board. Consumers won’t adopt the currency if there are no vendors. Having millions of vendors from the beginning will help consumers make up their minds faster.

The design of DasCoin will not allow for it to mint unlimited currency. It will end after minting a predefined amount of it. This helps to keep inflation of the currency in check.

DasCoin supports a referral system which serves to spread the word about DasCoin. Referral or affiliate systems are a great way to get others to do the selling of your product or service. It is low cost, too. The referrers spend money to drive traffic to the website of participating vendors. Vendors give up a percentage of sales in exchange for the potential customers. New customers can participate in the referral system, which can help DasCoin expand its reach.

It’s not likely that DasCoin will replace other cryptocurrencies or even fiat currencies. In fact, it will accept both as payment with other currencies planned for the future. However, the current plan is for it to be the new sheriff in town in the cryptocurrency world, and DasCoin management is on track for this to happen soon.

Will Warren Buffet’s Bailout of Home Capital Affect You Personally?

Sub-prime mortgage lender, Home Capital Group was in all sorts of trouble. The Canadian lender was facing a cash crunch and a loss of confidence with customers across Maple country. As the biggest provider of home mortgages to self-employed individuals, Home Capital Group has been battling disinvestment on a large scale.

The Ontario Securities Commission (OSC) recently settled a contentious lawsuit with Home Capital Group, but not without heavy costs (C$30.5 million). The company also settled a major class-action lawsuit for intentionally misleading investors vis-a-vis the underwriting process. As a result, depositors were pulling their funds from the Toronto-based company en masse.

Enter Berkshire Hathaway and Warren Buffet

‘… HCG’s ability to originate and underwrite well-performing mortgages… make this a very attractive investment…

The billionaire investor and strategist wasted no time compiling a bailout package for Home Capital Group valued at C$2 billion, the equivalent of US$1.5 billion. This credit line is geared towards Home Trust Corporation. Additionally, Berkshire Hathaway will purchase common shares of Home Capital Group valued at C$400 million.

Initially, Buffett’s group will purchase 16 million common shares valued at C$153.2 million and then invest an additional C$246.8 million to buy the other 24 million shares. The second investment requires the approval of Home Capital Group shareholders, while the first investment can take place without their approval.

The C$2 billion credit line is notable, since it will effectively replace the costly financing from the deal in April 2017. According to preliminary reports, the interest charged on the Canadian home mortgage company’s line of credit will be 9.5%. It will eventually decline to 9%. Berkshire Hathaway will pay on average $10 per share, which is a 33% discount on the stock price as at Wednesday, 21 June 2017.

Leading analysts are heartened by Buffett’s intervention. They believe that this is a strong endorsement of the Canadian sub-prime mortgage lender, and it will bolster confidence in the Canadian mortgage industry. Such bailout-style investments are not uncommon for the big-league US investor. In 2011, he dropped $5 billion into Bank of America (BAC) to prevent it from going belly up.

What Is the State of Canada’s Housing Market?

The state of the Canadian economy is difficult to gauge at this time. For example, cities like Toronto and Vancouver are characterized by steep appreciations in property prices. This is fueling anxiety in the markets, leading some to believe that a property bubble is forming in the country. If sub-prime mortgage lenders are continuing to finance this industry, it could be subject to a correction, or worse. The fate of Home Capital Group is important, since it was ensconced in a scandal 3 years ago where it severed ties with scores of brokers.

Many large-scale investors in the company are scared of the prospects that lay ahead. The dilution of the stock price thanks to Berkshire Hathaway has possibly saved the company, but not served the interests of existing shareholders who will now pay the price. Buffett’s C$2 billion loan will be effective by the end of June and will replace the current loan between a major investor and Home Trust Company.

Canadian Economy Remains Ironclad with a Few Chinks in the Armour

Currently, Canada has a stable credit rating of AAA. This credit rating is a barometer of the financial stability of the Canadian economy for pension funds, sovereign wealth funds, and institutional investors. It plays heavily into the country’s ability to borrow cheaply on international markets. The Economist reported in mid-June that Canada’s housing market is extremely overheated.

While the collapse of Lehman Bros and the banking crisis that followed did not impact Canadian lenders, it appears that the tide is slowly turning. Today, the top 20 banks in the world feature 3 Canadian banks. These include Toronto Dominion, Royal Bank of Canada, and Scotia. Now however there are concerns that Canadian moneylenders are acting recklessly and driving up a property bubble. In just 10 years, the price of property in Canada has ballooned 76% and household debt to GDP has increased from 74% to 101%. These are indeed troubling times.

Lenders are scrambling to offer the best mortgage deals, and the best credit card offers in Canada, and customers are lapping it up. However, the rapid increase in credit growth is a prelude to a possible financial crisis. The Canadian government has been working hard to eliminate speculation in the housing market, and Montréal may be next in line. Canadian bankers use the defence that mortgage debt is evenly dispersed and that it forms a minor component of household indebtedness.

Regulation remains a concern with Canadian lenders, since small banks and financial institutions are not required to adhere to stringent rules. In Canada, the return on equity for banks is typically 15% – 20%, and since the financial crisis Canadian profits have increased by 100%. Now, bank returns make up 1.3% of gross domestic product, which is significantly higher than the United Kingdom and the United States.

Refinancing may still be an option

To no one’s surprise The Bank of Canada has left its key interest rate unchanged at 0.5%. After reading the latest Monetary Report, it doesn’t sound like it will raise its policy rate any time soon. Inflation is flat, as is wage and export growth, and there is still uncertainty in the US and globally.

Despite record low interest rates, some new home buyers are finding it challenging to qualify for a mortgage due to a new round of rule changes announced late last year. These changes have also affected existing mortgage holders who may want to refinance to get a lower rate.

While low interest rates and robust regional housing, markets continue to be the norm, Canadians are still burdened with record-high debt loads. The ratio of debt to disposable income rose to 167.3% by the end of 2016. That means Canadians owe $1.67 for every dollar of disposable income, up from $1.66 the year prior.

If you’re sitting with equity in your home yet can’t seem to manage your debt payments, refinancing could still be an option. With credit card interest rates often pushing the 20% range and unsecured lines of credit in the 7% and higher range paying off high-interest debts can make sense.

Let’s review a refinance. Specifically, you are increasing the amount of your mortgage to pay off debt. Your actual mortgage payment may or may not increase, depending on a number of factors, and you may incur a penalty to break your existing mortgage if you are refinancing midterm, but your overall monthly payments should decrease. You could be paying off the refinanced debt at a much lower interest rate, which could save you thousands of dollars in interest in the long run.

Here are some reasons to consider a refinance:

Decrease your overall monthly debt payments by using your equity to pay off those high-interest credit cards or unsecured loans, which can help you better manage your budget.
You can refinance to purchase another property. Using the existing equity in your home can be a great way to buy a rental property which, if done right, can also make the interest you pay tax deductible.
You could also take out some of the equity for investment purposes.
Or you may want to refinance to renovate.

As you can see there are many factors to consider before deciding to refinance. Each individual’s financial situation is different. Call me and we can discuss the options available to you.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

How to Get a Car Loan with Bad Credit

Bad credit doesn’t mean you can’t get a car and doesn’t mean you can’t apply for a car loan with terms that don’t destroy your monthly budget.

Do you know? Almost 25% of auto buyers are regarded as sub-prime, so this means that they have a credit score below 620.

With just a little preparation, having a car loan with poor credit or even with no credit is feasible. Let me tell you how.

Prepare Yourself

It helps to know in advance that people with poor credit usually face higher interest rates and so, once approved, encounter paying more for their money compared to those with good credit. Thus, it’s extremely important that you use up all your options to be able to discover the best auto financing deal. This can simply save you thousands of dollars over the life of the loan.

Check your Credit Reports

Checking your credit reports will give you an in-depth picture of where you’re, and may help you identify any errors that can appear on the records. After that, you can tackle these errors before you approach loan providers.

The main credit agencies provide free reports once per year.  Checking your credit score can cost a couple of dollars, but it can be of great benefit to get an idea of how the lenders will address you.

Try and Find a Good Lender

Finding out how to get a car loan with bad credit will become easier when you know your choice. Getting a lender that welcomes car loan applications from those with bad or limited credit records is obviously a nice start.

Get in Touch with your Local Bank and Credit Unions

If you get low monthly payments but need to pay the loan back for more than 8 years, it’s almost certainly not worthwhile. You need to look for the loan that can give you the lowest interest rate and the least amount of monthly payments.

Make sure that terms and conditions are final. Some car dealerships will raise the monthly payments on your car soon after a few months. Always read the terms to make sure that you aren’t getting fooled into a more pricey payment situation.


Give Attention to the Terms But not on the Monthly Payments

If you get low monthly payments, but need to pay the loan back for more than 8 years, it’s almost certainly not worthwhile. You need to look for the loan that can give you the lowest interest rate and the least amount of monthly payments.

Make sure that terms and conditions are final. Some car dealerships will raise the monthly payments on your car soon after a few months. Always read the terms to make sure that you aren’t getting fooled into a more pricey payment situation.

Refinance your Loan

After 1 year of making payments for your loan, you should try and get it refinanced. This is particularly beneficial if your financial circumstances and credit has improved. Even reducing the interest rate by 1% will save you a great deal of money in the end.

Final Words

Even though they may require more research and settlement, auto loans for bad credit are certainly not impossible, and you may not need to agree to higher interest rates. If you limit your application to one month period, damage should be minimal, and you’ll be on the way to a profitable auto loan and ideally, much better future credit. You can also check companies as to find more on how to get a car loan, refinancing your loan or how you can transfer your car loan balance.

What’s going on with my appraisals

Changes in mortgage rules for home buyers and insurers certainly have had an impact on the housing market, and those changes have impacted property appraisals as well. Conventional mortgages – up to 80% of the value of the property – historically, were required to have a full appraisal. Now, in many areas of the country, an appraisal may also be required on insured mortgages — 80 to 95% loan-to value.

The decision to approve a conventional mortgage, after all other lending criteria have been satisfied, is made on a property’s fair market value. This is defined as the market value of an interest in land at the highest price reasonably expected, when sold by a willing seller to a willing buyer, after an adequate amount of time and exposure to the market.

So who determines the value of that property? One could argue that the market itself determines the value, which is true, but from a lender’s perspective that number must come from an independent third-party – the appraiser. An appraiser, who is specifically trained and has sufficient experience, will be asked to offer an impartial, written opinion of the property’s value.

Realtors normally use a comparative market analysis (CMA) to evaluate a property’s value based on local market data. Agents analyze listing and sales data for comparable properties in the area to recommend a price to list or to offer. However a CMA is not an appraisal. Although appraisers use the CMA approach, they use it in combination with other factors to determine the value of a property.

The major difference is that appraisals are done for a specific client — the lender. Because real estate is the major security for mortgages, the market value estimate needs to be as accurate as possible. Appraisers use ‘sold’ properties information only and compare similar property types, in close proximity, that have sold within a relatively short period of time – usually 90 days.

Not all residential properties are subject to a traditional appraisal. If the property is in an established area with similar properties then sometimes the price can be validated electronically. This model of appraising property, called automated valuation model (AVM), has become quite popular in the last 10 years.

However, given the nature of the housing market these days, mortgage lenders have moved away, in many areas, from AVMs for conventional mortgages, and for some high-ratio mortgages as well, and are asking for live, full on-site appraisals.

At the end of the day, an appraisal must reflect a property’s realistic true market value and needs to be backed up with accurate data.

So why does an appraisal come in lower than expected?

With the introduction of bidding wars, where, in some areas, prices may be artificially inflated, appraisers are still tasked with coming up with a property’s fair market value. Rapidly changing markets can be very challenging for an appraiser to properly evaluate a home’s worth.

Appraisers will try to get to the purchase price when evaluating a property. However, sometimes the sale is a few weeks ahead of the market. If prices are increasing, it may not show up in their analysis yet and the appraisal will reflect a lower value.

At the end of the day, the appraisal has to be a realistic evaluation of a property’s true market value and be backed up with data.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

Debt and debt settlement services

The debt-to-income ratio has hit the headlines again. This time the ratio rose to 167.3 % in the fourth quarter of 2016 compared to 166.8% in the third quarter. That means for every dollar of disposable income, consumers owe $1.67. Approximately 63% of that debt is in mortgages.

While this increase worries some policy-makers, studies have shown that consumers have been able to pay their debt relatively easily. Low interest rates have allowed consumers to pay down more of their mortgage principal, with payments split almost evenly between interest and principal in the fourth quarter.

But for some, the debt load is unmanageable and they search for solutions. You are no doubt familiar with advertisements from debt settlement services that promise to settle a consumer’s outstanding debt, for a fee. The caveat is buyer beware. If you’re considering this option, make sure to do your research and find a reputable company to work with. Or, I may be able to refer you.

Before you pay upfront fees or service charges, I may be able to help. Much of what debt settlement services offer can overlap with the services of a licensed mortgage broker.

Here’s how it works. Mortgage brokers can arrange debt consolidation on a mortgage renewal or on a refinance. When arranging a consolidation mortgage loan on a refinance or renewal the amount of the mortgage principal may be increased to pay out the total debt amount. This becomes part of the mortgage commitment and a condition of the mortgage loan. On closing, your lawyer will disburse the funds to your creditors and register the new mortgage.

What you need to know
A refinance alters the terms and conditions of your mortgage; specifically you are increasing the amount of your mortgage to pay off debt. Your mortgage payment may or may not increase, depending on a number of factors, and you may incur a penalty to break your existing mortgage if you are refinancing midterm. Depending on your current mortgage you could be paying off the refinanced debt at a much lower interest rate, which could save you thousands of dollars in interest in the long run.

As with all renewals, it’s always a good idea to review your mortgage with a mortgage broker who can shop the rates for you and get you the best deal, tailored to your particular situation. And, if you decide to switch lenders, there are no penalties at renewal time.

One of these options may be the perfect solution if you’re struggling with debt. Call me today for more information.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

The Four Types of Creditor Insurance

Home is more than a place you live. It’s your family’s haven from the world. But what if something happened to you? What would happen to the home you’ve invested so much in? You wouldn’t think about owning a home without insuring it, yet the odds of your house burning down is more remote compared to the odds of experiencing a life-changing event such as a job lay-off or a disabling accident.

Mortgage payments don’t stop when you’re unable to work so many home owners opt-in for mortgage creditor insurance. This type of mortgage protection insurance preserves ownership of your family’s home by making sure the mortgage keeps getting paid – even during the most difficult times.

Here are four types of mortgage insurance available:

Life Coverage: Mortgage life insurance provides security to both you and your insured co-borrower. If your co-borrower does not qualify for life insurance, you can still apply. Also known as mortgage insurance or creditor insurance, it’s offered by lending institutions and us. It is a life insurance policy that pays the balance of your mortgage to the lending institution if an insured person listed on the mortgage passes away.

Disability Coverage: This insurance is designed to pay a portion or all a homeowner’s mortgage payment if they become disabled — up to 24 months per occurrence. Individuals who opt to take advantage of this type of insurance need to take care to understand the policy completely. Determine the length of time the policy will pay mortgage payments during an episode of short-term or long-term disability. What dollar amount of the mortgage does the policy pay? Is there a waiting period associated with payment from the policy?

Critical Illness Coverage: What if it happens to you? When you survive a critical illness, you may not be able to return to work and your expenses could increase dramatically. If you are diagnosed with one of the 15 covered critical illnesses, based on our service provider’s criteria, which includes certain types of cancer, your mortgage payments are covered for 24 months, whether you return to work or not. Key questions to ask: What critical Illnesses are covered? What happens if I have an acute heart attack, recover in a few weeks or months, and return to work? Does my disability insurance cover me for living benefits? What cancers are covered? Do I need to take a medical examination? Mortgage Critical Illness Insurance is a benefit you enjoy while you are alive. It builds on your Mortgage Life Insurance to complete your protection.

Accidental Job Loss Coverage: If you are injured or are unable to work or become involuntarily unemployed, your monthly mortgage payments will be covered up to six months per occurrence.

If you don’t have any of these coverages now on your mortgage, we may be able to add them on.

Call me for more information.

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

Alternative lenders go mainstream

For some, getting a mortgage from a bank has become a bit more challenging – even if your credit score is good If you don’t qualify using the benchmark rate, regardless ofwhat mortgage rate and term you opt for – this has been called the” stresstest” — then you may be out of luck. With the introduction of new mortgagerules last year, the Government tightened mortgage lending guidelines inresponse to concerns that some markets in Canada are overheated and thatCanadian debt levels continue to increase.

The new mortgage rules have also had an impact on those who want to refinance their mortgage loan. And at renewal time, if you want to increase your existing loan, change your amortization or shop for a better rate, the rules may have an impact as well.

Despite the challenges, there are solutions. A bank is not the only option for a mortgage. The new mortgage rules have created an opportunity for a variety of specialized lenders to enter the market who are flexible and open to reviewing a variety of situations and has led to a growing pool of mortgage funds.

In a nutshell – they’ve gone mainstream
These lenders are not limited to private individuals with money to lend, either individually or as part of an investment pool. Mortgage brokers still have access to those funds; however, the market is also seeing an increase in the number of Mortgage Investment Corporations (MICs) as well as smaller lenders with products to fill the gap.

Many alternative lenders put more weight on the equity in a property, rather than on the work you do or on the credit challenges you may have.

Smaller institutional lenders in some regions across Canada, like credit unions, however, may offer specialized lending with affordable interest rates, reasonable lending fees and flexible underwriting.

A few benefits of specialized lending:

Quick closings: The key to a quick close is having your financing set up quickly — specialized lending can make that happen.
Terms of the loan: These loans are for short periods of time, usually no more than two or three years.
Great for investors: Because specialized lenders have flexibility, they will look at those fixer-upper rental properties with a keen eye and may fund both the purchase and the home improvements.
Diverse repayment options: This is especially helpful for entrepreneurs. Payments can be structured more creatively and may include interest-only payments and balloon payments at the end of the term or on closing of a sale.
Construction financing: Bank construction financing can be riddled with red tape. Private lending may get the borrower more money, and quicker access to construction draws, which in the end, could save time and money when building a home.

For more information and to find a lender who will meet your needs, call me today!

Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta) and can be contacted at

Let PSCU Take Care of You

The idea of a credit union started simply. People wanted to work together to progress their savings and borrow successfully without using a big bank. Credit unions have been around since the 1940s and are becoming increasingly popular.

What is a credit union?

There are 40,000 credit unions worldwide in over 80 countries. Some countries have recently seen a move towards a majority using credit unions instead of big banks. Based around a community with a shared interest in how they wish to operate their money, credit unions can have any number of members.

All credit unions share similar goals:

  • To provide aid and assistance to members who need financial help
  • To support members on a regular basis
  • To provide lower rates on loans

Credit unions are popular because they want to see members save successfully and prosper in everyday finances.

Public Service Credit Union fits the ideal of a top credit union perfectly. Promoting an active interest in how its members look after their money since 1951, it is recognized as one of the best credit unions in Michigan.

What are the benefits of using Public Service Credit Union?

A feeling of community

In a credit union, you are not just a customer, you are a member of an association. Credit Unions are not-for-profit organizations, where any profits made are passed down to the members. Public Service Credit Union also provides members with a range of benefits to help them manage their finances on a daily basis. These include debt solution advice, insurance programs, and tax management.

Anywhere banking

Public Service Credit Union promotes ‘Anywhere Banking,’ an online system that allows customers to access their accounts from anywhere in the world. This system allows a transferral of funds, viewing account activity, and the ability to apply online for a personal loan.

As well as anywhere banking, Public Service Credit Union has branches located in many parts of Michigan and is available to discuss your financial needs 24/7, 365 days a year. Such a great network gives customers the freedom to speak to someone face to face, online or by telephone as soon as they require assistance.

Lower personal loan rates

One key benefit of Public Service Credit Union is that it offers far lower personal loan rates. A personal loan provides a payday cash advance, allowing the customer access to the funds they need when they need them. Money may be needed in an emergency, for example for bills or accident repairs, and quick loans may be the answer. Public Service Credit Union is more accessible in a difficult money situation simply by providing the option to apply for an online loan. This gives the customer greater freedom to move their financial plans forward without waiting for payday to do so. The lower interest rates also make them a more likely consideration for anyone looking for personal loans in Michigan.

What Checking Accounts Are Available from Public Service Credit Union?

On top of excellent personal loan management in Michigan, Public Service Credit Union also provides a variety of great checking accounts to suit any circumstance. Even the smallest sum of money will be well looked after through secure transactions and identity fraud protection.

  • Basic

The Basic Checking Account has all the features that are expected of a checking account. These include a debit card, 24 hours a day access, and mobile, online, and telephone banking. This account is made for those who need somewhere for their money to go without extras that will not be used. There is a monthly fee, but this is waived if the monthly balance of $250 is met.

  • Direct Advantage

The Direct Advantage Checking Account has all the features of the Basic Account but with a few extras added to it. There is no fee applied, through a monthly direct deposit of $800 is required. The added benefit of the Direct Advantage Checking Account is the 10 free Out of Network PIN transactions available each month.

  • Direct Advantage Plus

The Direct Advantage Plus Checking Account is more advanced than other checking accounts available. Designed to manage a greater income, this account is fee-free and has all the features of the Basic Account and the Direct Advantage Account. Dividends are also paid monthly, and there is free identity theft protection placed on the account. The direct deposit for this account amounts over $1500 each month, with an added expectation of 10 debit card transactions.

So what are you waiting for?

Which account will you choose? It is clear that Public Service Credit provides members with greater benefits and prospects for their money.

So choose Public Service Credit Union in Michigan today! Take advantage of the resources that the big banks provide but with the personal touch of a dedicated, friendly community.