Posts Tagged ‘Home Equity Line of Credit’
Vacation Property Mortgage – What you need to know
If you are like me, you have probably dreamed about one day purchasing a vacation property at your dream holiday destination. For some of you it might be a cottage on the lake at your secret fishing spot and for others it might be a time-share at your favourite Mexican resort. Whatever your dream vacation home looks like, the way in which you pay for it will be very different. Vacation Property Mortgage Options. The main determining factor for if you will be eligible for a mortgage will be the ownership of the property. A cottage or condo type property will fall under the same rules and regulations that most homes fall under. However, a time-share or other fractional ownership type property will probably not be eligible for mortgage financing. Why you might ask? Well, you do not actually own the property. You own the right to use it or possibly even a share of the corporation that owns it, but at the end of the day there bank would be unable to ...
New Mortgage Rules Coming For Canadians
Canadian Finance Minister Jim Flaherty announced this week that Canadians will see new mortgage rules starting in March. This tightening of mortgage rules is meant to keep Canadians from using their homes as a piggy bank, and avoiding the scenario we have recently seen in the US. Consumer debt has been rising in Canada at a rapid pace in recent years and these mortgage regulations are in part meant to curb that growth by curtailing individual's ability to access the equity in their home or purchasing a home they technically couldn't afford by stretching the amortization to 35 years. What are the new mortgage rules? Reduced Amortization to 30 years - After March 18, 2011 Canadians who put down less than 20% on a home purchase will no longer be able to obtain a mortgage with an amortization greater than 30 years. The current max is 35 years which still might be available from some lenders, but only for low ratio mortgages (80% or less loan to value) Maximum mortgage refinance to ...
Six Uses For a Home Equity Line of Credit
A Home Equity Line of Credit Might be For You A home equity line of credit (HELOC) provides a level of flexibility that is not available from your traditional fixed or variable mortgage. A home equity line of credit allows you to customize your mortgage payments and pay as little as interest only making this an ideal product for anyone looking to keep their payments as low as possible. How Does a Home Equity Line of Credit work? Like a traditional mortgage, a HELOC is registered against your property. This provides the lender with greater security resulting in you receiving a lower interest rate. Interest rates for most HELOCs are around prime plus 1% (3.25%). Compare this to an unsecured line of credit around 7% or many credit cards which are around 18%. Your interest savings can be substantial. Your HELOC gives you access to the equity in your home (up to 80% of the value of the home) to use for emergencies, large purchases, renovations, vacations....etc. You can have your entire mortgage as a line of credit or you can add a line of credit to ...
