Housing Co-op Services
CCEC Credit Union has been doing mortgages for housing co-ops for over 30 years. We can help you meet your renovation/repair goals. Below is some basic information we will need from the co-op. If you want to talk about your options, or need help putting your application together, just give a phone call to our Business Loans representative.
Information Required for an Application
Information about your co-op:
1. Year to date internally prepared interim financial statements (if available)
2. Current year’s approved budget
3. Last 3 years of audited financial statements
4. Signed copy of the Borrowing Resolution approved by the Co-op members
5. Extract of board minutes indicating the resolution to borrow
Information about the loan:
1. Brief outline of financing needs that would be required from CCEC
2. Copy of quotes/supporting documentation for repairs and maintenance being financed
3. Proof of property tax payments
4. Property tax assessment of property to be used as collateral
5. Permission to communicate with the Agency and access their information on the Co-op’s requirements
1. Name and address of the Co-op Complex.
2. Brief outline of major repair work completed, date when completed and costs.
CCEC Share Purchase Loans
CCEC Credit Union has been specializing in financial services for housing co-ops since 1976. Over the years CCEC has enabled hundreds of people to meet the financial requirements of housing co-ops by negotiating share purchase loans.
CCEC has a Share Purchase Loan Program: The Co-op "share secured" loan at reduced interest rate (prime rate + 1%). The interest rate on this type of loan is lower than most other "consumer" loans. Obtaining a share secured loan requires the participation of all three parties: the housing co-op, the member and the credit union.
This program is for those housing co-ops who are members of CCEC Credit Union and have an active account at CCEC. If your co-op is not presently involved in this share secured program now and would like to be, the co-op needs to become a CCEC member. CCEC has a broad range of services that are tailored to meet the needs of the housing co-op sector. If the co-op is interested in becoming a member, please call the credit union for more information.
The procedure for obtaining a Co-op Share Secured loan is as follows:
1. Your finance committee decides if they are willing to secure the loan, and records the decision in the minutes.
2. The potential member is contacted and sent in to CCEC to open an account ($50 equity shares purchase + $1 entrance fee). The applicant must fill out a loan application for the share purchase loan. Please include which co-op you are accepted into, who the contact person at the co-op is and state whether the co-op is willing to secure the loan.
3. CCEC sends two loan documents to the housing co-op for signature and seal verifying that the co-op is agreeing to share secure the loan.
4. Once the documents are completed and returned to CCEC the member makes an appointment with our personal loans officer to sign the necessary loan documentation.
5. The money is then transferred to the Co-op's account at CCEC where it is frozen until the loan has been repaid in full. The Co-op receives copies of all the loan documentation and collection attempts.
CCEC is pleased to be involved in this specialized housing co-op service, yet another area in which we continue our commitment to supporting a strong co-op sector. If you have any questions regarding the Share Purchase Loans, or other CCEC services please give us a call.
CHIP - Co-operative Housing Investment Pool
CCEC is proud to participate in the Co-operative Housing Investment Pool (CHIP). All three participants win: the housing co-op, the Co-operative Housing Federation of BC (CHF/BC) and the credit union. CHIP accounts at CCEC offer the co-op attractive interest rates and no monthly maintenance fees.
CHIP is a special deposit account in which the interest rate increases as the number of co-op participants and the size of the total CHIP deposits increases. In addition, CHF/BC receives an interest payment based on the entire CHIP pool.
There are two CHIP options: a demand deposit and a one-year locked-in term deposit. Minimum deposit is $10,000.
The demand (or variable rate) CHIP calculates interest on the daily balance and pays it into the account monthly. The interest rate varies with the prime rate. Free withdrawals are permitted up to 10% of the balance in a month, or any amount after 60 days notice.
CCEC helps your housing co-op's savings grow and provides the economic stability you need, while helping to support the whole co-op community. Invest in your principles - don't compromise social responsibility for responsible money management.
At CCEC Credit Union, depositors are 100% protected by the Credit Union Deposit Insurance Corporation of British Columbia.* This protection makes B.C. credit unions one of the safest places to save and invest your money. Need information on what choices are available to your co-op? We'd be happy to meet with you to discuss your options - about our fixed and variable rate CHIP deposits or any of other services.
* visit http://www.cudicbc.ca/ for further information.
CHIP - An investment that's socially and fiscally responsible!