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Factors for Lending Decisions

One of the best ways we provide excellent member service is to explain  how our lending decisions are made. Being aware of your whole financial picture is key to being prosperous and we want to help you get where you want to be.

The 5 Cs of Credit are key considerations in all loans or mortgages:


An assessment of both experience and relationship of the member with Synergy is critical. We consider:
  • Planning skills and experience
  • Financial skills
  • Integrity

Capacity (repayment ability)

Capacity addresses the past financial performance of the member; a prime indicator of their future viability and the likelihood of the loans being repaid in an orderly manner. We consider:

  • Your Gross Debt Servicing Ratio (GDS) recommended 32 per cent or less
    • GDS = (mortgage payment + property taxes + heating costs)/Total gross income
  • Your Total Debt Servicing Ratio (TDS) recommended 40 per cent or less
    • How it’s calculated: All of your monthly fixed commitments including all of the expenses from your GDS, plus loans and credit card payments divided by your monthly gross income

Credit history

Through your credit report, the lender learns information about your ability to handle your debt obligations and your current outstanding obligations.

There are two credit reporting agencies in Canada: Equifax and TransUnion. Your credit report is a key indicator of credit history and is used to determine your credit rating. It’s also a good idea to stay on top of what is being reported on your credit reports to ensure there has not been any questionable activity.

You can access your credit report here:
  • Equifax: or by calling 1-800-465-7166
  • TransUnion: or by calling 1-800-663-9980


Collateral provides the secondary source of repayment. To ensure adequate coverage for the loan we look at:
  • Available security and its value
  • Commitment to other lenders

Capital (aka net worth)

What you own (assets) should exceed what you owe (liabilities).

Synergy Credit Union promises a speedy answer to your mortgage requests. It is important you provide all the required information, so an answer can be given to you within two business days. All mortgage approval decisions are made by our in-house experts, with no Board of Directors involvement and no waiting for a distant head office to have their say.

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Mortgage Switch Program

Ready to move? Are you looking at different mortgage options? We will pay up to $1,500 of the fees associated with moving your mortgage.
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Mortgage Pre-Approval Form

A mortgage pre-approval is a great first step in your homebuying journey. By being pre-approved, you can confidently begin your house search.

Up Next: Cost of Ownership

It is important to know exactly what costs you are going to incur up front and along the way.
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