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Email this1:25 pm
April 19, 2019
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Nehpets said
butterflycharm said
Be careful how? Is it not CDIC listed?Lighthouse CU is an Ontario credit union covered under FSRA; CDIC would not be involved.
You are correct. A broker told me FSRA will cover the interest too in case of a bankruptcy. So what is the risk?
1- The CU is not real or the party that claims to be the CU is not the CU and takes the money and disappears...
2- Economy goes really bad.
How to check against #1 properly; not just seeing if they are listed on FSRA site?
If going through a financial broker, their insurance will cover any such losses (of course one has to check out the broker properly too 🙂
Any other risks @Loonie you can think of?
2:04 pm
October 21, 2013
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The risk is that your GIC would be cut short if the CU fails, and you don't know how long you'd have to wait for reimbursement.
I'm not comfortable with their business model, to the extent it has been described. To me, it doesn't make sense. You have to evaluate this for yourself.
I'd like to see them have a track record first.
2:43 pm
December 20, 2016
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Loonie said
......I'm not comfortable with their business model, to the extent it has been described. To me, it doesn't make sense........
Could you elaborate on your concerns about Lighthouse CU, Loonie?
Stephen
10:52 pm
October 21, 2013
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I didn't find Lighthouse's case for existence compelling.
1:28 pm
September 7, 2018
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Loonie said
I didn't find Lighthouse's case for existence compelling.
To me, if Lighthouse's rates are good/competitive, service is acceptable, and FSRA covers my deposits, I really don't care about their "raison d'etre" any more than I care about the case for existence of Tangerine or Meridian or DUCA.
6:25 pm
October 21, 2013
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I do care when it's a brand new CU with zero track record, rates are unusually high, service quality is not yet knowable, and the case doesn't make sense to me.
Not all CUs survive, and this one has such a narrow mandate that it would likely be difficult for another CU to pick it up if it failed.
Others can draw their own conclusions. Each to their own.
7:05 am
October 30, 2022
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I personally took 5.7 with BMO paid monthly
10:18 am
September 7, 2018
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hayman said
I personally took 5.7 with BMO paid monthly
That is a very good rate. I note on iTrade today that BMO monthly interest GIC pays 4.85%. On iTrade a Scotia monthly GIC pays 4.875%. I note that GIC rates have definitely dropped this week on iTrade. Not much doubt now that GIC rates have plateaued and are in fact taking decreases.
11:25 am
April 19, 2019
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canadian.100 said
That is a very good rate. I note on iTrade today that BMO monthly interest GIC pays 4.85%. On iTrade a Scotia monthly GIC pays 4.875%. I note that GIC rates have definitely dropped this week on iTrade. Not much doubt now that GIC rates have plateaued and are in fact taking decreases.
Meridian has 5.91% effective GIC for 18 months. They give 1% for $75k and 5.25% for 18 months which makes is 5.916666% annually.
11:34 am
April 19, 2019
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Loonie said
The risk is that your GIC would be cut short if the CU fails, and you don't know how long you'd have to wait for reimbursement.I'm not comfortable with their business model, to the extent it has been described. To me, it doesn't make sense. You have to evaluate this for yourself.
I'd like to see them have a track record first.
You could have a point or a feeling that may happen. Apparently, FSRA or CDIC once took about a year to pay out when things were not as digitized (in 1990s). In recent times it was Home Trust which was bought by another company so no payout was made. And apparently there are no other examples.
What would be interesting is to know how much these guys pay as insurance premiums to FSRA or whoever and add that up on top of the interest they want to provide to end user and subtract the total from private mortgage lending market rate. What other costs are there to becoming a credit union? And if the numbers are lower than 9% then they could still stay viable unless there is a 30% to 50% real estate crash assuming they go second on mortgage. And also assuming that with such price crash people can't afford and foreclose (i.e. no jobs either).
There is also the risk of fraud so due diligence is needed just as much.
BUT There are others who provide 5.75%, 5.91% rates...so their rate is not very far off. Why do you think their business is not viable?
12:08 pm
April 14, 2021
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butterflycharm said
Meridian has 5.91% effective GIC for 18 months. They give 1% for $75k and 5.25% for 18 months which makes is 5.916666% annually.
Where do you see this 5.91% rate? Their site states only 5.25% for 18-mo.
1:15 pm
March 30, 2017
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butterflycharm said
You could have a point or a feeling that may happen. Apparently, FSRA or CDIC once took about a year to pay out when things were not as digitized (in 1990s). In recent times it was Home Trust which was bought by another company so no payout was made. And apparently there are no other examples.
What would be interesting is to know how much these guys pay as insurance premiums to FSRA or whoever and add that up on top of the interest they want to provide to end user and subtract the total from private mortgage lending market rate. What other costs are there to becoming a credit union? And if the numbers are lower than 9% then they could still stay viable unless there is a 30% to 50% real estate crash assuming they go second on mortgage. And also assuming that with such price crash people can't afford and foreclose (i.e. no jobs either).
There is also the risk of fraud so due diligence is needed just as much.
BUT There are others who provide 5.75%, 5.91% rates...so their rate is not very far off. Why do you think their business is not viable?
1 year to pay out in the 1990s ?! U sure about that ?? Show me the news pls.
1:15 pm
April 19, 2019
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HermanH said
Where do you see this 5.91% rate? Their site states only 5.25% for 18-mo.
See offer #2 here and do the math for $75k GIC over 18 months => 2.59166% annual:
1:17 pm
April 19, 2019
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savemoresaveoften said
1 year to pay out in the 1990s ?! U sure about that ?? Show me the news pls.
A FI advisor said so. Maybe you can find the history online.
1:30 pm
March 17, 2018
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In order to get the Meridian extra 1% cash bonus up to 750.00 for funds transferred over by March 1, you have to book an appointment, or go to branch, or call them at 1-833-905-1515.
I imagine you might get a hard sell for other products, but over phone should be safe.
Edit: Just phoned them to clarify more details and waited 15 min on hold and then hung up. Guess they take the last 15 min off at the end of the day as a break, since I called at 4:45 pm , and they close at 5 pm
1:39 pm
October 27, 2013
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Re post #30, misinformation. There is an offer from Smith Financial to buy Home Capital Group which has not yet closed. Home Trust is by no means insolvent.
3:00 pm
September 15, 2017
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From post #27, this thread, intended to discuss Lighthouse Credit Union, has gone mainly off topic.
Quote from Loonie in post #22 regarding Lighthouse C.U.:
"I'm not comfortable with their business model, to the extent it has been described. To me, it doesn't make sense."
Many financial institutions were originally formed to service their own ethnic community. Many still primarily target their "community" but are open to the public.
e.g. Wealth One Bank - Chinese, Italian Canadian Savings/C.U. - Italian, Parama Credit Union - Lithuanian, Buduchnist C.U./BCU - Ukrainian, Lighthouse Credit Union - Jewish; etc.
3:55 pm
March 30, 2017
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butterflycharm said
A FI advisor said so. Maybe you can find the history online.
That FI advisor is full of ….
12:42 pm
April 19, 2019
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HermanH said
Where do you see this 5.91% rate? Their site states only 5.25% for 18-mo.
I read it wrong. The 1% must be put into Meridian Wealth Management (mutual funds or ETFs) and can not be for GICs.
12:47 pm
April 19, 2019
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Briguy said
In order to get the Meridian extra 1% cash bonus up to 750.00 for funds transferred over by March 1, you have to book an appointment, or go to branch, or call them at 1-833-905-1515.I imagine you might get a hard sell for other products, but over phone should be safe.
Edit: Just phoned them to clarify more details and waited 15 min on hold and then hung up. Guess they take the last 15 min off at the end of the day as a break, since I called at 4:45 pm , and they close at 5 pm
I made a phone appointment and the rep said 1% is not for GICs and only for their Wealth Management which is mutual funds and etfs.
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