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A credit union is a member-owned, provincially regulated financial cooperative that offers mortgages and other banking products to its members, often with more locally tailored underwriting than a national bank.
Credit unions are cooperatives — borrowers typically need to become a member, often through a small share purchase, before the credit union will lend to them. Because they're smaller and community-rooted, credit unions sometimes show more flexibility on unique properties or local circumstances than a national bank branch would.
Credit unions still assess GDS and TDS like any other lender, and brokers frequently treat well-capitalized credit unions as part of the prime, A-lender tier alongside banks and monolines.
Provincially regulated: credit unions are overseen by provincial regulators rather than OSFI federally — in Ontario that's FSRA, which also regulates mortgage brokering.
Membership required: borrowers typically need to become a member, often via a small share purchase, before a credit union will lend to them.
Ratios still apply: credit unions still assess GDS and TDS, though internal policy can be more flexible than a bank's for local or unique properties.
Often grouped with A lenders: brokers frequently treat well-capitalized credit unions as part of the prime, A-lender tier, alongside banks and monolines.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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