Recently, a number of AlternaSphere panelists participated in an online focus group. Their discussion and feedback will help shape Alterna in the months and years to come. Curious to know what they told us? Want to have your say? Join AlternaSphere and your voice will be heard. Plus you could win a prize just for joining. Go to alterna.ca and click the AlternaSphere button to get started.

build more than just home equity.build your community.

Ottawa Riverkeeper, Ottawa, Ontario

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Summer 2010

SCOOP Delivered to Your Desktop! In keeping with our commitment to reduce paper, members are invited to register to receive SCOOP electronically. If you would like to have the newsletter delivered to you by email, please send a note to SCOOP@alterna.ca, including your name, mailing address and email address.

Alterna offers competitive home ownership solutions—from innovative products to great rates. And, with an Alterna-tive Mortgage, you’ll benefit from top-notch service and will feel good knowing that you’re helping to support your local community.

Bundle your Alterna-tive Mortgage with options* that make home ownership a little easier:•EasyaccesstofundswithaLineofCredit•Paylessinterestbyconsolidatingyourdebt•Peaceofmindwithmortgagepaymentprotection•BringyourmortgagetoAlternaandsave!Transferfeescovered^

Bookanappointmentwithahomeownershipexperttoday!1.877.560.0100

Did you know? Approximately 85 cents of every dollar at Alterna is reinvested back into our local communities, through loans that stay in our neighbourhoods, our micro-lending program, community economic development initiatives, sponsorships, and more.

We’re planning to give your newsletter a top-to-bottom makeover. But before we do, we need to hear from you. Prefer email over print? Want to receive your newsletter more or less often? Have a great name in mind? Send your ideas to SCOOP@alterna.ca and you can help shape the new Alterna newsletter.

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LoanYou can lend your adult child the money for a downpayment. But remember that if you charge interest and set up a repayment schedule, it will contribute to his or her overall debt ratio which will likely impact the amount he or she can obtain in the form of a mortgage. This type of transaction should be signed by a notary.

GiftSome parents like the idea of sharing their wealth while they are still here, rather than as part of their estate many years down the road. In that case, a gift amount for the downpayment is an easy option—although you may want to consider if this approach will reinforce or re-establish your child’s dependence on mom and dad. The financial institution will require a signed ‘gift’ letter indicating that the mortgagee does not need to

repay the money—this is so they can be sure of the borrower’s ability to afford his or her mortgage payments.

Silent InvestorA creative option is for parents to act as silent investors in their son or daughter’s property. Money can be given for the purpose of a downpayment, with no interest or payments due as long as he or she owns the property. However, when the property is sold, the child (owner) owes the parents (investor) the original amount plus a percentage of any increase in value. For example, a condominium cost $200,000 to purchase but was sold for $250,000 (an increase in value of 25%). The parents originally invested $50,000 so are now owed $50,000 plus $12,500 (25% of original investment). A notary should sign your ‘silent investor’ documentation.

Help your Kids SaveMany parents charge adult children rent for living in the family home once they are making a decent living. If you still have adult ‘kids’ in the house, you may want to try some secret savings. For example: If you don’t need the cash, stash the rent money away in a high-interest savings account and gift it back to him or her for a downpayment.

When it comes to financing, you want to be sure your child gets the best service possible, but also learns about the process so he or she can manage it independently next time. Consider suggesting that you visit an Alterna home buying expert together. At Alterna we always offer our Fair Rate Pricing and take the time to explain the details every step of the way so every member becomes knowledgeable about the home buying process. Call today to book an appointment.

Most Ontarians are well aware that the Harmonized Sales Tax (HST) is coming. The HST will come into effect on July 1, 2010, combining the 5% GST and 8% PST into one 13% tax. In many cases, there will be no difference in the total tax owed. But, some items that were previously exempt from PST will be subject to the entire HST, and vice versa.

How the HST is applied to small day-to-day purchases may not seem like a major concern, but it all adds up. And, the impact of the HST on large purchases could come as a big surprise.

New Home? HST HeadacheThe HST will apply to new homes and to all home closing costs, which means buying a home will cost thousands of dollars more in taxes.

For example, currently new homes are exempt from PST. Under the HST, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $500,000 will be subject to the full HST. This would mean an additional $40,000 on a $500,000 home.

Learn moreThere are many online resources available about the introduction of HST. Take the time to do some research and think about how these changes may affect your budget.

Helpful links:canadaonline.about.com/od/money/a/ontariohst.htmwww.taxtips.ca/gst/onhst.htmwww.cbc.ca/money/story/2009/03/27/f-tax-faq.htmlFor business: http://www.rev.gov.on.ca/en/taxchange/transition.html

The HST and You

All Grown Up? Helping your Adult Child Purchase Property

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Still unsure about the HST and its impact on your budget? Alterna Savings’ new Money Management Program is a great option for getting your financial house in order. This unique, personalized program is designed to help members take control of their day-to-day finances through budgeting and controlled spending. And, access to the Money Management Program is a complimentary benefit of membership.

A Personal Money Coach will work with you to determine which Money Villain is foiling your finances and will help you take control of your money, setting you up for both short- and long-term financial success. Call 1.877.560.0110 to book an appointment with a Personal Money Coach today.

BUDGET

Your 28-year-old daughter is doing well for herself. She completed university, has a steady job that pays pretty well, but she is still a long way off from saving enough for a down payment. You want to help but aren’t sure what approach to take. Here are a few options.

An appointment with a Personal Money Coach is a great way to start the home buying process. Your Coach can help you reach your goals by establishing a budget that accounts for living expenses, savings, and the unexpected.

A ‘Fair Rate’ from Alterna Savings means you automatically get a terrific rate, without all the trying negotiations. No begging, pleading or special negotiation skills required—apply for a mortgage and we’ll give you the best rate we can.

Claudia Huerto is passionate about Mexican food, respecting traditional ingredients, and healthy eating. She’s also pretty passionate about her 18-month-old business, El Cilantro Catering, which offers wholesome Mexican-inspired dishes including many vegetarian twists on traditional recipes.

After owning and operating a Toronto restaurant for three years, Claudia decided a change was needed. She took time working at a variety of jobs and found that she was always drawn back into the food service industry. Following someone else’s direction in the kitchen didn’t sit well with Claudia, though. “I knew I had the capacity to run my own business, so I started to investigate my options,” says Claudia. She took a course through the Toronto Business Development Centre (TBDC) where she developed a business and marketing plan, learned accounting skills and, most helpfully, had access to a business mentor for one year.

Already a passionate Alterna Savings member, Claudia was thrilled when Jean Barrett, Alterna’s Community Micro-Loan Co-ordinator, presented at the TBDC. “I am a total believer in Alterna’s philosophy and way of doing business. Once I learned about the Community Micro-Loan Program,” Claudia exclaimed, “I knew it was for me.”

She met with Jean numerous times and was impressed by the supportive response she received.

“At Alterna, they believe in you. I could never tell a regular bank about my dreams and expect that they would believe me—or that a financial institution would consider that passion when assessing a loan application.”

In fact, a recent study* confirmed that

securing credit for an upstart business is extremely difficult. Sixty percent of Alterna’s Micro-Loan borrowers indicated that Alterna was the only source willing to finance their new business.

So how was Alterna able to help Claudia get El Cilantro Catering off the ground? Her loan was used to purchase food service equipment and a computer, and to secure the use of a shared vehicle. “I’m not sure I could have done this without Alterna,” claims Claudia.

El Cilantro Catering is a great example of Alterna’s Micro-Loan Program in action. We provide

financing to small businesses with smart and passionate owners. The difference is, we may approve a loan even if there is a low credit rating or no credit history.

Claudia is convinced that planning is key to her success—and Alterna believes in that too. Micro-loan borrowers must have a strong

business plan. And, Alterna’s program is successful because we offer business support services— we don’t simply lend and sit back and wait. It’s a two-way relationship. If you would like to learn more about the

Community Micro-Loan Program, call Alterna at 1.877.560.0100.

You can contact El Cilantro Catering at 647.887.6804 or elcilantrocatering@gmail.com.

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Alterna measured its environmental footprint for the first time in 2009. Today, as always, we are committed to keeping members informed of our performance, accomplishments, opportunities, and challenges. From the successes of our Community Micro-LoanProgramandsteadilyrising member service satisfaction rates to our performance in the areas of employee relations and environmental responsibility, you deserve to know.

We invite you to explore the 2008-2009 Accountability

Summary—which is available in print or online. In the online PDF, you will find a link to the expanded Accountability Report, a third-party assured online report that covers nearly every aspect of Alterna’s activities.

To view the interactive online Summary, visit alterna.ca and click on the Healthy Financial

Futures button or email query@alterna.ca to request a printed copy (please include your full name and address).

El Cilantro Catering

Did you know?

I am a total believer in Alterna’s

philosophy and way of doing business.”

“

Alterna provides financing to

small businesses with smart and

passionate owners.

*Strengthening our Community byEmpoweringIndividuals,Alterna’s recently published report about its community Micro-LoanProgramandtheimpact the program has had in its first 10 years, can be found at alterna.ca.

Ottawa Corporate Office

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Toronto Corporate Office

165 Attwell Drive Toronto, ON M9W 5Y5

Alterna Savings TeleService Centre

Toll Free: 1.877.560.0100 Toronto: 416.252.5621 Ottawa: 613.560.0100

Alterna Bank TeleService Centre

Toll Free: 1.866.560.0120 Gatineau: 819.595.6980 Ottawa: 613.560.0120

Website and Online Banking

alterna.ca

FoundingMember of CBSROntario

FinancialLiteracyisoneofAlterna’sCorporateSocialResponsibilityPillars.ThisspringwelaunchedourMoneyManagementProgram to help members understand and gain control of their day-to-day finances. In addition, Alterna participated in the federalgovernment’sTaskForceonFinancialLiteracy.ThisconsultationprovidedadviceandrecommendationstotheMinisterof Finance to strengthen the financial literacy of Canadians. You can read Alterna’s Task Force submission in the News section at alterna.ca.

Alterna Biz CampThis winter Alterna sponsored a unique after-school activity for teens, Alterna Biz Camp. Hosted in partnership with the Learning Enrichment Foundation, Biz Camp gave 15 youth the opportunity to learn about running their own business. Over a two-month period, the participants spent four hours a week learning about marketing, accounting, business planning and more, and they also enjoyed presentations from four guest facilitators over the course of the program.

From the very first day, the individuals in the group supported one another and helped each other develop projects and business goals. They also challenged each other to ensure that each project was well designed and presented.

The culmination of the group’s work was a very successful ‘garage sale’. After just two hours, the students walked away with a $200 profit and a whole lot of pride.

Alterna continues to work with two graduates who want to pursue the dream of running their own business. A new session of Biz Camp starts this summer.

Alterna Do it for Dad! Run and WalkFor the twelfth consecutive year, Alterna sponsored the Do it for Dad! Run and Walk in Ottawa on Father’s Day. Thanks to all those eager members and dedicated employees who came out to support a great cause. Visit www.ottawacancer.ca to learn about the results of this year’s fundraiser.

$50,000 for the YMCA-YWCAAlterna Savings has pledged $50,000 over five years to the National Capital Region YMCA-YWCA in support of its Strengthening the Heart of Our Community campaign. As partners in the community, Alterna and the National Capital Region YMCA-YWCA will work together to achieve more than they can alone. “At Alterna, we empower our members to achieve financial success and we strive to do the same for those in our community. In a similar way, the YMCA-YWCA empowers individuals and small businesses to succeed on their own terms,” notes John Lahey, President & CEO of Alterna.

Alterna Social Economy Scholarship The Alterna Social Economy Scholarship in Honour of Haswell B. Iron allows Alterna to invest in the future of our business community and to support the young people who will become leaders in the social economy. Alterna was pleased to present the award to this year’s recipient, Eyal Rosenblum, at a lunch held in his honour. The Social Economy Scholarship is granted in partnership with York University and the York University Foundation.

Alterna Corporate Social Responsibility (CSR) Idol WinnerThe 2010 Alterna CSR Idol winner, Christine Racine, SME Account Manager, was announced at Alterna’s AGM in April. Christine will travel on the Guatemala Leadership tour in November with the Canadian Co-operative Association.

Co-operative Young Leaders Are you proud of being part of a co-operative financial institution? We sure are, and we like to spread the word by promoting the power of co-operation to the next generation. This summer, in partnership with the Credit Union Charitable Foundation, Alterna Savings will sponsor 8 teens to attend Co-operative Young Leaders (CYL), a summer experience like no other. Visit www.ontario.coop/cyl to learn more, and consider sending your teen next summer!

Members Boost the Grandmother ConnectionTwo Alterna members, Peggy Edwards and Margaret Thompson, operate Kazuri Jewellery, which sells Fair Trade jewellery made in Nairobi. In turn, Kazuri supports the Grandmother Connection, a grass-roots organization dedicated to supporting grandmothers in Africa tasked with raising their grandchildren whose parents succumbed to AIDS. The Grandmother Connection donated over $143,000 to the Stephen Lewis Grandmothers Campaign in 2009. Exceptional efforts for a very worthy cause!

In Your Community

Alterna Savings is a member of the Deposit Insurance Corporation of Ontario. CS Alterna Bank is a member of the Canada Deposit Insurance Corporation.Alterna refers to Alterna Savings and Credit Union Limited (“Alterna Savings”) and its wholly owned subsidiary CS Alterna Bank (“Alterna Bank”). Together, Alterna Savings and Alterna Bank form the Alterna Financial Group.

* Terms and conditions apply to all referenced products and services. ^ Limit applies.

Alterna is a member of

Alterna Supports Financial Literacy in Multiple Ways