Lighthouse Credit Union | Page 2 | GIC discussions | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
Lighthouse Credit Union
January 16, 2023
1:25 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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?

January 16, 2023
2:04 pm
Loonie
Member
Members
Forum Posts: 8723
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

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.

January 16, 2023
2:43 pm
Nehpets
Ontario
Member
Members
Forum Posts: 906
Member Since:
December 20, 2016
sp_UserOfflineSmall Offline

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

January 16, 2023
10:52 pm
Loonie
Member
Members
Forum Posts: 8723
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

I didn't find Lighthouse's case for existence compelling.

January 17, 2023
1:28 pm
canadian.100
Member
Members
Forum Posts: 785
Member Since:
September 7, 2018
sp_UserOfflineSmall Offline

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.

January 17, 2023
6:25 pm
Loonie
Member
Members
Forum Posts: 8723
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline

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.

January 18, 2023
7:05 am
hayman
Member
Members
Forum Posts: 40
Member Since:
October 30, 2022
sp_UserOfflineSmall Offline

I personally took 5.7 with BMO paid monthly

January 18, 2023
10:18 am
canadian.100
Member
Members
Forum Posts: 785
Member Since:
September 7, 2018
sp_UserOfflineSmall Offline

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.

January 18, 2023
11:25 am
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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.

January 18, 2023
11:34 am
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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?

January 18, 2023
12:08 pm
HermanH
Member
Members
Forum Posts: 800
Member Since:
April 14, 2021
sp_UserOfflineSmall Offline

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.

January 18, 2023
1:15 pm
savemoresaveoften
Member
Members
Forum Posts: 1892
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

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.

January 18, 2023
1:15 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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:

https://www.meridiancu.ca/rrsp2023

January 18, 2023
1:17 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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.

January 18, 2023
1:30 pm
Briguy
Member
Members
Forum Posts: 567
Member Since:
March 17, 2018
sp_UserOfflineSmall Offline

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

January 18, 2023
1:39 pm
AltaRed
BC Interior
Member
Members
Forum Posts: 2167
Member Since:
October 27, 2013
sp_UserOfflineSmall Offline

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.

January 18, 2023
3:00 pm
GR
Member
Members
Forum Posts: 538
Member Since:
September 15, 2017
sp_UserOfflineSmall Offline

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.

January 18, 2023
3:55 pm
savemoresaveoften
Member
Members
Forum Posts: 1892
Member Since:
March 30, 2017
sp_UserOfflineSmall Offline

butterflycharm said

A FI advisor said so. Maybe you can find the history online.  

That FI advisor is full of ….

January 19, 2023
12:42 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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.

January 19, 2023
12:47 pm
butterflycharm
Member
Members
Forum Posts: 139
Member Since:
April 19, 2019
sp_UserOfflineSmall Offline

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.

No permission to create posts

Please write your comments in the forum.