Costco offers home mortgages

Costco in Moncton, New Brunswick

Photo credit: Wikipedia

Toilet paper, meat, clothing, tires, and now a mortgage? You can buy it all at Costco. The warehouse giant is now entering the home mortgage business. You can get a new loan or refinance your old one.

Costco advertises savings of $5,000 over the life of the loan. If you’re an Executive level member, your fees will be $600 or less. If you’re a GoldStar member, your fees will be $750 or less.  You may also pay 3rd party fees for an appraisal, title, and credit report.

The warehouse store is working with 11 lenders to offer the mortgage product. You enter your mortgage details, and select the lender and rate that interests you. Once you choose the loan product you want, you deal directly with that lender and not Costco. The bank is just a preferred lender through Costco.

It’s also mentioned in the fine print that your mortgage may be sold. That’s common in the industry, but if you choose the right bank you may not have this happen. I’ve had two mortgages and never had it sold.

This is not the first venture for the warehouse store into financial products. The company also offers auto, home, and health insurance.

 

 

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One response to “Costco offers home mortgages

  1. Local credit unions and small local banks are less likely to sell your mortgage. So staying local helps when shopping for mortgage in this regard.