Posts Tagged ‘home equity’
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 ...
Canadians Have More Equity In Homes
One thing I have noticed over the last year or so is how much of an affect the US media has on Canadians. This really shouldn't be a surprise considering the number of US TV channels we have access to combined with the internet. It is really hard to avoid hearing everything that happens with our neighbour to the south....and why would we want to avoid it, in today's global economy it is more important than ever to stay current on what is going on in the rest of the world. Where I think we get in to a bit of trouble is when we don't differentiate between the news we receive from our American neighbours and the news we receive from our local sources. We assume that due to the proximity and close relationship between the two countries what happens on one side of the border must hold true for the other side. I see this problem pop up quite frequently when dealing with clients. They naturally assume the devastation in the housing and mortgage markets that the US is experiencing holds true for the Canadian market place. i would say one of the first questions many clients ask is "how ...
