Give Your Institution the Strategic Flexibility to Maintain a Competitive Edge
The FHLBNY offers credit products designed to help facilitate your balance sheet strategies. Members can customize advances with a wide variety of maturities and structures, allowing you to choose funding that meets your objectives. FHLBNY advances can be customized by size, term, settlement date, amortization schedule, symmetry and more. If this is your first time borrowing with the FHLBNY, we created an interactive Borrower’s Guide to assist members who want to initiate their first borrowing.
Click on an advance for more information or view a printable version of all the descriptions.
Medium- & Long-Term Advances
Letters of Credit
For more information, contact a Relationship Manager at (212) 441-6700 or email us at [email protected].
Contact our Credit Services Representatives at (212) 441-6600 for a live quote or sign up to receive the daily rate indications (members only)
A quick source of liquidity to help manage daily cash flows and provide funding for various short-term uses
- Same-day access to funds for immediate cash needs
- Ability to borrow up to maximum borrowing capacity
- No additional borrowing limit restrictions above standard FHLBNY credit and collateral limits
- No set-up or renewal fees
- Can be initiated conveniently through 1Link®, our secure internet banking system
Adjustable-Rate Credit (ARC) Advance
Match the interest rate characteristics of your adjustable-rate loan portfolio
- More closely match the attributes of adjustable-rate assets with financing tied to floating rate advance funding
- Tailor to meet specific financing needs with a wide range of maturities, up to 30 years
- Link to the Secured Overnight Financing Rate (SOFR) index with the option to use Simple Averaging or Compounding interest accrual calculations
- Limit exposure to rising and falling interest rates by using embedded options (caps/floors)
As of September 23, 2022, members are now able to embed interest-rate caps/floors into SOFR-Linked Adjustable Rate Credit Advances. Embedding SOFR Caps and Floors can help members to manage their interest expense in a variety of diverse rate environments. Other advantages include:
Currently, Structured Advances (including ARCs with a cap/floor) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.
Achieve a wide variety of financial management goals, with maturities ranging from overnight to 30 years*
- Meet liquidity needs
- Fund long-term assets
- Lock in rates for future funding purposes
- Forward start dates are available
- Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million
The FHLBNY also offers the Callable Fixed-Rate Advance, where the borrower has the option of prepaying funding without any penalty. Please contact a Relationship Manager for more information.
*Dependent on financial condition and member type
Obtain preferential pricing when using Treasury or Agency issued Mortgage-Backed or CMO securities collateral
- Effectively utilize your securities portfolio as collateral and obtain improved advance pricing
- No penalties for pledging smaller blocks of securities
- Receive the same low rates for AAA-rated Agency and Non-Agency securities
- Maturities from 2 days to 10 years
- Available with Symmetry for Fixed-rate, non-Community Lending Program Advances with maturities of one year or greater and minimum advance size of $3 million
Match the amortization characteristics of your fixed-rate mortgages and mortgage-backed security portfolios
- Enhance match funding of long-term assets
- Borrow fixed-rate funds with the option of customizing the amortization schedule to match a selected prepayment profile
- Maturities and amortization schedule from 1 to 30 years
An advance with built-in prepayment options that can help members reduce interest rate risk and prepayment risk at minimal added cost
- No prepayment fees when “called” after the pre-determined lockout period
- Offers protection amidst rising rates with flexibility to lower your cost of funds in static and declining rate environments
- Tool to mitigate both interest rate and prepayment risks
Fixed-Rate Advance with SOFR Cap*
Combines a fixed-rate borrowing with an embedded interest-rate cap in which the rate remains fixed but may be reduced quarterly if SOFR rises above the pre-selected cap.
- Provides protection against rising interest rates (lowers your institution’s cost of funds as rates rise)
- Flexible medium-long-term funding option best used to extend liabilities, potentially enhance spreads, and preserve margins
- Available with Symmetry for non Community Lending Program Advances with maturities of one year or greater and minimum advance size of $5 million
*Currently, Structured Advances (including Fixed-Rate Advance with SOFR Cap) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.
Principal-Deferred Advance (PDA)
A hybrid advance product that combines elements of the Fixed-Rate and Amortizing Advance. It begins as a Fixed-Rate Advance, allowing members to choose a specific amount of time they would like to defer the principal payment of the advance up to 5 years. When the lockout or principal-deferred period ends, the advance becomes an Amortizing Advance, where the member makes principal and interest payments on the loan up to another 30 years.
- Valuable asset/liability management tool
- Fully amortizing (back-end) with a choice of varying balloon terms
- Mirrors characteristics of a typical construction deal with a permanent take-out
- No embedded options in the advance
Putable Advance Modification Program
Offers the ability to potentially lower interest expense, reduce optionality in a member’s balance sheet and to better manage interest-rate and liquidity risks.
Learn more on Financial Intelligence.
A wide array of maturities and lockouts for medium- to long-term funding where the FHLBNY retains the option to terminate the advance at specified times
- Competitive pricing
- Customized maturities from 2 to 10 years with lockout periods ≥ 1 year
- One-time or quarterly option exercise
- Customized strikes are available
View our Putable Rate Information.
*Currently, Structured Advances (including Putable Advances) will be limited to $3 billion in aggregate volume, with a $2.75 billion per member limit, available on a first-come, first-served basis. At the FHLBNY’s sole discretion, structured advance parameters may potentially be adjusted based on market conditions. Please consult with the Member Services Desk.
Interest Rate Derivatives
Reduces income fluctuations caused by interest rate volatility
- Achieve asset/liability management goals
- Hedge interest rate exposure or increase the certainty of future funding costs
- Potentially lower the cost of funding
Note: Available for institutions with total assets less than $10 billion
Advance Rebate Program
Provides members with a cash rebate on a portion of the fees paid relating to the early extinguishment of eligible advances when new eligible advances are obtained within 30 calendar days1. To receive the cash rebate, the prepaid advance(s) must have a remaining term of six months or longer, and new advance(s) must have a term of six months or longer.
- Members receive cash rebate
- Provides additional flexibility with balance sheet management
- Strengthens and adds value to your Co-op
1Advances booked under Community Lending Programs and advances with remaining maturities of less than six months are not eligible advances.
Please Note: Reduced cost of funding under FHLBNY Community Lending Programs (CLP) is available for all advances with a minimum term of one year, except Putable Advances; CLP Advances are not eligible for the SPA feature or the Advance Rebate Program; our Putables (when available), Callable, Swaps, and Letters of Credit programs require additional agreements; all credit product terms are subject to credit conditions.