Consolidation Loans




This special loan program is designed to assist our members with paying off high interest rate debt such as credit cards and pay day loans.  
 

Product Facts

All debt consolidation loans are “open” meaning that they can be paid down or paid off in full without penalty at any time.

Loan repayment may be up to seven years in length.

Weekly, biweekly, semi-monthly and monthly payment options are available.

Loan interest rates fluctuate and are based on the VPCU Prime Lending Rate.

The base interest rate for this loan program is Prime + 3%. However, please see the Relationship Pricing section below to find out how to get an even lower rate.

Affordable payment protection is available.
 
 
Relationship Pricing Details

Additional rate discounts are available through our special relationship pricing offer for this program. Members that setup or currently have their direct payroll deposit, a VPCU mortgage or carry a VPCU Collabria Visa credit card will be eligible for further rate discounts. In addition, members that obtain CUMIS creditor insurance on their loan will receive a further discount as well. Please see below for a breakdown of the additional discounts available:
  • Entire Direct Payroll Deposit to a VPCU account: 0.50% rate discount
  • VPCU Collabria Visa card: 0.50% rate discount
  • VPCU Mortgage: 0.75% rate discount
  • A CUMIS Insurance product obtained on the loan: 1.00% rate discount
The maximum relationship discount in addition to the preferred loan rate shall be 1.50%.
 
Please refer to some examples below for clarity on how relationship pricing is applied to the Debt Consolidation Loans:

Example #1: If a current member has their entire direct payroll deposit at VPCU, a VPCU Collabria Visa card and a VPCU Mortgage with us, the relationship pricing discount offered would be 1.50%. Thus, their final loan rate would be Prime + 1.50%.
 
Example #2: If a current member has a VPCU Collabria Visa card and adds CUMIS Insurance coverage, the relationship pricing discount offered would be 1.50%. Thus, their final loan rate would be Prime + 1.5%.
 
Example #3: If a current member has their entire direct payroll deposit at VPCU and a VPCU Collabria Visa card with us, the relationship pricing discount offered would be 1.00%. Thus, their final loan rate would be Prime + 2.0%.
 
Example #4: If a current member has a VPCU Mortgage with us, the relationship pricing discount offered would be 0.75%. Thus, their final loan rate would be Prime + 2.25%. It should be noted in this scenario we may look at a mortgage refinancing option for you as that may offer you the best net cost savings.
 

Application Process

Please complete a loan application form and provide all supporting documents including all current credit card and loan statements. You can reach our Loan Application webpage by clicking HERE. Also, please note that these loans are subject to VPCU credit approval guidelines.
 

Frequently Asked Questions

1. What type of debt should I consolidate?

Personal loans, lines of credit and credit card debt would be the typical items. Pay day loans would be another item to consolidate as well.

2. Why should I consolidate?

Since payday loans and credit cards charge very high interest rates, a debt consolidation loan offers you the opportunity to not only save thousands of dollars in total interest paid over time, but in most cases it will help improve your monthly cash flow as the debt repayment is blended over a longer period of time.
A debt consolidation loan is your pathway to retire all or most of your outstanding debt over a set period of time. Most members seek out a debt consolidation loan over a three to five-year period. Conversely, to those that continue paying minimum payments only on credit cards, the total repayment period could be decades long due to the high interest rates and low principal reduction.    

3. Where can I go to for additional resources on how to manage debt?

Please see the links to the federal and provincial government websites below.

Federal Government Resource:
https://www.canada.ca/en/financial-consumer-agency/services/debt/plan-debt-free.html
 
Provincial Government Resource:
https://www2.gov.bc.ca/gov/content/family-social-supports/borrowing-money/expensive-loans/payday-loans#


4. How long does it take to get the loan processed?

Once you have provided us with a completed loan application form and the required documentation, we will respond to your request within 1 to 2 business days. Response times will vary depending on the volume of requests. The most efficient way to submit your request is to email the signed completed loan application form and your documents to loans@vpcu.com .
 
5. I want to pay off my loan or make an extra payment. How do I do that?

Please email our loans department at loans@vpcu.com to submit your request. Alternatively, please feel free to give us a call at 604 683 2434 or visit one of our branches if you have any questions.
 
6. How does the VPCU Prime lending rate work exactly?

The VPCU Prime lending rate is a variable rate. It may increase or decrease based on market conditions. In addition, all financial institutions use the interest rates set by the Bank of Canada as a benchmark when setting their respective Prime lending rate. A summary of the Bank of Canada interest rates can be viewed HERE.