DUCA Mortgage Review: Rates, Lending Guidelines and Who They Suit
Generally for Ontario buyers and homeowners, including self-employed and bruised-credit applicants, who want a member-owned lender that judges files individually.
Who DUCA is
DUCA Financial Services Credit Union Ltd. Is an Ontario credit union founded in 1954 by Dutch-Canadian immigrants who could not readily obtain credit from the established banks; the name is a contraction of Dutch Canadian. It is owned by its members and regulated by the province. It has grown from a single Toronto branch to roughly nineteen full-service branches across southern Ontario, serving more than 93,000 members from a head office in north Toronto. DUCA was the first Canadian credit union to become a certified B Corporation, and it runs community initiatives under its DUgood banner.
What DUCA lends on, and who for
You can come to DUCA through one of its branches or through a mortgage broker, using its DUCA Broker Services channel. Between them the mortgages on offer cover prime insured, insurable and uninsured lending, along with rental, business-for-self, near prime and bruised credit programs, bridge financing and home equity lines that cannot be re-advanced. Lending is limited to property in Ontario, and pricing is tiered by market size, from the Greater Toronto Area down to smaller non-urban centres. You must become a member of the credit union. Files are judged by people rather than by automated underwriting.
DUCA mortgage rates
DUCA prices on this week's board (updated 2026-08-31) across 5 terms (1-year, 2-year, 3-year, 4-year, 5-year) on the insurable shelf. The public board shows every rate without the lender's name; a free account shows DUCA's rate beside its name, and the board shows where it sits against the other 46 lenders on the sheet.
How to approach DUCA
You can contact DUCA yourself; nothing stops you. What you cannot easily find out is what they will actually accept. Which of their products sit outside the federal stress test, how they read income that does not arrive on a T4, and what they will approve as an exception — none of that is published in full anywhere, and it moves.
A licensed broker who places files with lenders like this every week knows those criteria, and more usefully knows how to structure a file so it lands inside them rather than just outside. On anything that is not a straightforward salaried purchase, that structuring is most of the difference between an approval and a decline. It costs you nothing on a prime mortgage — the lender pays the broker when it funds.
| Lender type | Credit Union |
| Registered as | DUCA Financial Services Credit Union Ltd. |
| Head office | 5255 Yonge Street, 4th Floor, Toronto, ON M2N 6P4 |
| Website | ducabrokerservices.ca |
| Phone | 1-866-900-3822 |
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DUCA Mortgage Review: Programs & Lending Guidelines
How DUCA's lending guidelines read from the broker side — the programs on the shelf, how income is qualified, credit floors, terms and where they lend. Consumer-facing policy only: broker submission mechanics and compensation are out of scope, and guidelines change, so confirm anything you are planning around with the lender or a licensed broker.
DUCA's Mortgage Offering — Residential
DUCA is an Ontario credit union lending through the broker channel, and it runs a prime shelf and a near-prime shelf side by side.
Prime. Insured mortgages to 95% of value on purchases and transfers; insurable mortgages to 80%; and conventional uninsured mortgages to 80% on purchases, transfers and refinances. Owner-occupied principal residences, including a home with a rental suite in it.
Near prime and beyond. Four distinct programs for files that prime will not take:
- Near Prime — good credit, but higher loan-to-value or debt service than prime allows.
- Bruised Credit — lower scores, past bankruptcy or consumer proposal, heavier debt loads.
- Business for Self — solid credit with income that tax returns do not fully show.
- Rental — purchase and refinance of investment property, which prime does not offer at all.
Also available: bridge financing between a sale and a purchase, secondary financing behind a DUCA first mortgage, spousal buyouts, and new construction at completion. There is no home equity line of credit in the conventional sense, though a non-readvanceable equity mortgage exists on the near-prime side for refinances.
Commercial mortgages are not offered through this channel.
DUCA Income and Qualification Requirements
Ratios by program.
| Program | Max GDS / TDS |
|---|---|
| Insured and insurable | 39 / 44 |
| Conventional uninsured | 39 / 44 |
| Non-conforming (B-20 non-compliant) | 45 / 50 |
| Near Prime | 55 / 60 |
| Bruised Credit | 45 / 50 |
| Business for Self | 45 / 50 |
| Rental | 45 / 50 |
| Equity mortgage (non-readvanceable) | 39 / 44 |
Near Prime's 55/60 is the widest set of ratios on offer here, and it is aimed squarely at borrowers whose credit is fine but whose debt load is not.
Qualifying rate. Every mortgage qualifies at the contract rate plus two points, or the benchmark where that is higher.
How income is verified. DUCA works on a two-source model: a primary document that shows current income and a secondary document that confirms history. For salaried borrowers that is a pay record or recent deposits plus an employment letter, backed by a year-end pay record, tax slip or assessment. Where an employment letter and a second current document are both provided, the historical piece can often be dropped.
How income is read. Salaried and hourly income counts in full. Casual, contract, bonus, tips and second-job income is averaged over two years — with the more recent year used where earnings are rising, and the lower year where they are falling. Seasonal work is eligible, though no more than 30% of qualifying income can come from Employment Insurance. Commission income is averaged the same way.
Self-employed borrowers on the documented route provide two years of returns and assessments plus a second confirmation that the business exists and operates, with income taken as the two-year average and a modest gross-up available to sole proprietors and partnerships. On the Business for Self program, income can instead be established from six months of bank statements alongside a declaration and two years of assessments, with at least two years of operating history behind it.
Pension, retirement and investment income counts in full. Maternity and parental leave counts on the return-to-work salary where the employer confirms the date, position and pay, and the household can carry the payments in the meantime. Support income counts where it will continue at least three years; support the borrower pays is added as a liability. Child benefits count at half per child on the traditional route. Foster income counts with two years of experience. Disability income counts with confirmation, though provincial disability support does not. A taxable car allowance received for a year counts and can offset the car payment. Rideshare and delivery income counts where it has been filed for two years; short-term rental income does not.
Non-taxable income is not grossed up — a meaningful difference from most lenders on this list, and one that hurts pension and benefit-heavy files.
DUCA's Specialty Programs
Near Prime. Ratios to 55/60, loan-to-value to 80%, amortization to 30 years, loans to $2 million, minimum score 600. Designed for a borrower whose credit is intact but who is carrying more debt than a prime lender will service.
Bruised Credit. Minimum score 500, ratios to 45/50, loan-to-value to 65%, amortization to 30 years, loans to $1.5 million. A bankruptcy must be discharged two years or more, and a consumer proposal balance can be paid out of the proceeds. Available in the GTA, major urban, urban and rural markets.
Business for Self. Minimum score 600, ratios to 45/50, loan-to-value to 80%, loans to $1.5 million, income established from bank statements rather than returns. Two years of business operation required.
Rental program (near-prime side only). Purchase and refinance to 80% loan-to-value, ratios 45/50, amortization to 30 years, loans to $1.5 million, minimum score 650. Rental income on a non-owner-occupied property is worked through a rental worksheet: up to 90% of gross rent less a vacancy allowance, the mortgage, taxes, heat, insurance and condominium fees. Where the rental is a suite in the borrower's own home, half the rent is simply added to income. The prime side does no rental lending at all, so an investor file goes here by default.
Non-readvanceable equity mortgage. A one-year refinance product to 65% loan-to-value on owner-occupied homes, ratios 39/44, minimum score 650, loans to $2.5 million, GTA and major urban only. There is also a one-year open interest-only option.
Bridge financing. To $500,000 unsecured, or $1 million secured, for up to 120 days, minimum score 650, Ontario only.
Secondary financing is permitted behind a DUCA first mortgage on the conventional and near-prime, bruised credit and business-for-self programs.
Minimum Credit Scores & Treatment of Liabilities
Scores. 600 on both insured and uninsured prime files, applying to every applicant. 600 on Near Prime and Business for Self. 500 on Bruised Credit. 650 on rentals, on bridge financing, and on the equity mortgage. On the near-prime side, pricing follows the score of the higher income earner.
Credit history. A bankruptcy must be discharged at least two years across the near-prime programs. A consumer proposal balance can be paid out through the refinance. Income tax arrears can be carried in the debt service calculation over twelve months rather than forcing a payout, which is more accommodating than most.
Liabilities. Support the borrower pays is added as a liability rather than netted from income. Borrowed down payment funds are included in the ratios. Where heating cost is unknown, it is estimated from square footage on a published scale starting at $75 a month for smaller homes. A borrower who does not own the property being financed carries a shelter cost — declared rent with a floor, or a lower floor for room and board. Closing costs are shown at 1.5% of the purchase price, and 1% of purchase price is used for property taxes on new construction.
Both bureaus are used, which matters for borrowers whose Equifax and TransUnion files diverge.
Terms & Amortization Options
Terms. Prime: one- to five-year fixed, and three- and five-year variable. Near-prime programs are fixed only — one to five years, with no variable or adjustable option on that side at all. The equity mortgage runs one year.
Amortization. Insured: 25 years, extending to 30 for first-time buyers and new builds. Insurable: 25 years. Conventional uninsured: 30 years. Near Prime, Bruised Credit, Business for Self and rentals: 30 years. Bridge financing: 120 days.
Payments. Monthly, biweekly, weekly, and accelerated biweekly or weekly.
Prepayment. Up to 20% at any point during the year, and the privilege can be used at payout if it has not been used already — worth knowing before a discharge, because it reduces the balance the penalty is calculated on.
Penalties. Fixed terms of five years or less: the greater of three months' interest or an interest rate differential measured against the posted rate for the remaining term. Adjustable: three months' interest.
Variable behaviour. The payment does not change when prime moves; the split between principal and interest does. A borrower can convert to a fixed rate at any time, provided the new fixed term runs longer than what is left on the variable.
Rate holds. 90 days, on live transactions only. No pre-approvals are issued, so the process starts with a firm purchase agreement.
Porting is available straight, with an increase, with a decrease, or blended, subject to requalification. Mortgages are assumable.
Special Notes
- No rental lending on the prime side. An investment property file goes to the near-prime rental program regardless of how strong the borrower is, which changes the rate conversation before it starts.
- Non-taxable income is not grossed up. Most lenders add 25% to 35% to non-taxable income. DUCA does not, which materially reduces qualifying income on files built on pension, disability or benefit income.
- Tax arrears can be serviced rather than paid out. Income tax arrears can be spread across twelve months inside the debt service calculation.
- Near Prime's 55/60 ratios are among the most generous published on a near-prime shelf, and they exist for exactly one borrower: good credit, too much debt.
- No home equity line of credit. The equity mortgage on the near-prime side is a fixed one-year refinance, not a revolving line.
- No lender fee on the prime side. A fee applies on the near-prime programs.
- Switch and transfer costs are the borrower's. DUCA does not pay legal or appraisal fees on a transfer, though up to $3,000 of costs can be added to the mortgage.
- Property standards. No mobile or modular homes, log homes, leaseholds, co-operatives, timeshares, fractional ownership, houseboats, trailer parks, rooming or shared rentals, condominium conversions or hotels, working farms, or unusual conversions. Condominiums with active litigation or a pending special assessment are excluded. Seasonal properties without year-round access are excluded. Minimum sizes are 750 square feet for a house and 450 for a condominium — the condominium floor is one of the lower ones in the market.
Service Area
Ontario only.
Prime and insurable lending is available across the province. Uninsurable and near-prime lending is tiered by market — GTA, major urban centres of 100,000 or more, urban centres of 30,000 or more, and non-urban markets below that — with the tier setting the loan size at which the sliding scale begins.
Where a property sits in or near a community of fewer than 5,000 people and more than 50 kilometres from an urban centre, default insurance is required.
Rural properties carry lending value on a house plus five acres, on parcels to 50 acres, with no hobby farms and no farming activity. Recreational properties need year-round access. Bridge financing is Ontario-only, and the equity mortgage is confined to the GTA and major urban centres.
Loan-to-Value Treatment
| Program | Maximum LTV |
|---|---|
| Insured purchase or transfer | 95% |
| Insurable purchase or transfer | 80% |
| Conventional uninsured | 80% |
| Near Prime | 80% |
| Business for Self | 80% |
| Rental (purchase or refinance) | 80% |
| Bruised Credit | 65% |
| Equity mortgage, non-readvanceable | 65% |
The sliding scale is what actually sets the number on anything uninsured. Above a threshold that depends on the market, only half the additional value is lent against:
| Market | 80% applies to the first | Above that |
|---|---|---|
| GTA | $2M | 50% |
| Major urban (100k+) | $1.5M | 50% |
| Urban (30k+) | $1M | 50% |
| Non-urban (under 30k) | $800k | 50% |
On Bruised Credit the same tiers apply at 65% rather than 80%. Insured and insurable files are not subject to the sliding scale at all.
Below 50% loan-to-value, a full appraisal may not be required — a small practical saving on low-ratio refinances.
Borrower ratings for DUCA
In today’s world, reviews dictate the service industry. Brokers have taken the hit for bad lenders. We bring the consumer experience to light to help borrowers decide.
How quickly did they issue a commitment and get to funding?
Was the rate you got competitive for the product you qualified for?
Could you reach someone, and did they resolve things?
Portal, e-signing, document upload, online account — did it work?
Were the terms, fees and penalties clear before you signed?
Worked with DUCA?
Score them on the five things above. We confirm every review by email before it publishes, and we publish the bad ones too.
DUCA mortgage questions
Is DUCA a real mortgage lender?
Yes. DUCA is a credit union based in Ontario. Its own site is ducabrokerservices.ca.
What kind of lender is DUCA?
Credit Union. Provincially regulated, which means they are not bound by the federal stress test. That makes them the right answer for a specific and quite common kind of file.
Should I go to DUCA directly or through a broker?
You can approach them yourself. The reason most people do not is that a lender's real criteria — how income is read, what is accepted as documentation, what will be allowed as an exception — are not published, and they change. A broker who works with DUCA regularly knows them and knows how to present a file to fit them, which on anything other than a simple salaried purchase is usually what decides the answer. On a prime mortgage it costs you nothing either way, because the lender pays the broker when it funds.
Would DUCA approve me?
No profile page can answer that, and any site that tries is guessing. It turns on how your income is earned and how much of it a lender will count, your credit history, the property itself, and how much you need against what it is worth. Those are the questions a licensed broker asks before naming a lender — and they will tell you which ones realistically fit, this one included, and which would price it better.
Where does DUCA lend?
Its head office is in Ontario. Lending areas change and are not always the same as where the lender is based — confirm current coverage with the lender or a broker before planning around it.
Would DUCA take your file?
Send us the details and a licensed broker will tell you which lenders fit — this one included, and the ones that would price it better.
