SOURCE: Coast Capital Savings Credit Union

Coast Capital Savings Credit Union

May 28, 2015 12:53 ET

British Columbians Prefer Flu Shot and Aging to Mortgage Shopping

Coast Capital Savings Survey Reveals Hefty Mortgages Are Inhibiting British Columbians From Meeting Other Financial Priorities

SURREY, BC--(Marketwired - May 28, 2015) - In a B.C.-wide Ipsos Reid study conducted on behalf of Coast Capital Savings, B.C. homeowners revealed they often choose to forego important long-term financial goals and needs in order to meet their mortgage obligations.

The survey also found that many British Columbians prefer getting a flu shot or aging to shopping for a mortgage.

Coast Capital President and CEO, Don Coulter, voiced concern over the findings, "British Columbians are putting their financial wellbeing in jeopardy to meet immediate expenses -- none of which is more daunting than the current, unprecedented housing costs," explained Coulter. "It is getting more difficult to find the balance financially -- being comfortable now while still setting the stage to meet all of your future goals." Coast Capital is addressing these challenges with their new Members Get It™ Mortgage product. (For more survey results see below).

"The information helped us design our new mortgage strategy that addresses a real need in the current marketplace," Coulter continues. "Buying a new home and homeownership in general comes with significant financial responsibilities and it's important for financial institutions to help customers, especially first-time buyers, navigate and manage these requirements."

Coast Capital's research showed that managing other financial goals alongside mortgage payments, choosing among different terms and ensuring a good rate, were areas of most concern for respondents.

Coast Capital is answering these concerns with a product that offers a competitive rate, easily understood terms and "Help Extras" designed to assist members with their other financial goals. "It isn't one over the other," Coulter explains. "Our Members Get it Mortgage is a unique addition to the marketplace as it doesn't just offer a cash incentive -- there are lots of financial institutions doing that -- this product is actively helping our members address their overall financial wellbeing. For our younger members, it helps them build a savings ethic that is imperative for their financial success now and well into the future."

The Members Get It Mortgage "Help Extras," which range from $500 to $1,000 depending on the terms of the mortgage, allow members to put that money into an RRSP, RESP, term deposit, tax free savings, or any other single or combined investment vehicle. There are also "Help Extras" available for small business owners that help keep the growth and success of their business front of mind while also securing a great mortgage.

Members Get It Mortgages are available both to new and existing customers with the "Help Extras" being offered each time the mortgage is renewed as well as when it is initially set up, further defining it from other available options. "Membership has value here at Coast Capital Savings," Coulter explains. "We went into the development of our new mortgage approach knowing that we absolutely needed to reward our existing members as well as those who are brand new to Coast Capital. That isn't something that you see a lot currently -- but again, we are proving that membership indeed has value, hence the name: Members Get It Mortgages."

Earlier today Coast Capital held a surprise event in downtown Vancouver to promote its new mortgage offering. Over 300 early morning commuters pulled cash-filled piggy banks from a massive home-shaped installation. Each piggy bank boasted a "Help Extra" of up to $1,000. The event, #VancouverGetsIt, was designed to provide a helping hand, and raise awareness about overall financial planning.

"In addition to the helpful financial boost, our goal is to remind homeowners about the importance of other financial goals," Coulter says. "We really encourage them to come in for one of our Money Chats with a financial expert to explore ways of achieving financial balance. We are committed to ensuring a visit to one of our branches is far less daunting than getting your flu shot!"

Ipsos Reid Study
The Ipsos Reid study asked B.C. homeowners questions about some hard choices and below is a snapshot of findings:

  • 70 per cent of homeowners with families said they put so much money toward their mortgage that they can't save as much for retirement
  • 68 per cent of first-time homeowners said mortgage payments are preventing them from investing as much as they would like
  • 66 per cent of homeowners with families said mortgage obligations take away from their ability to save as much they would like for their children's education or their own
  • 57 per cent said they would rather fill out their taxes than shop for a mortgage
  • 56 per cent said they would welcome a flu shot over mortgage shopping
  • 54 per cent said they would prefer aging by a year to shopping for a mortgage
  • 41 per cent said they would choose going to the dentist over mortgage shopping

Coast Capital Savings is Canada's largest credit union by membership, owned by its 522,000 members. It has 50 branches in the Metro Vancouver, Fraser Valley and Vancouver Island regions of British Columbia and has exciting plans to grow. Product innovations include Canada's first free chequing account from a full-service financial institution. Coast Capital is one of Canada's 10 Most Admired Corporate Cultures™ and was named one of 2014's B.C. Top Employers. It is a member of Canada's Best Managed Companies Platinum Club and an Imagine Canada Caring Company. To learn more, visit www.coastcapitalsavings.com.

Contact Information

  • For more information, please contact:

    Tom Leslie
    Edelman Vancouver
    E: tom.leslie@edelman.com
    O: 604-648-3430
    C: 778-868-7991