Hi,
I need som suggestion/advise about the LOC. I am in Canada from last 8 year and haven't started any sort of LOC yet. I am living in my own house from last 4 years and thinking to start a secure LOC. Having some concerns, please let me guide.
- Is this is good to take a Secure LOC?
- I have house Mortagage and Car loan, nothing outstanding on any Credit
card and have average credit history
- If I take secure LOC from any bank, this will impact on my Mortagage renwel
which is due next year?
- I will get higher mortagage rates due to the secure LOC on my house?
- for secure LOC, contact directly to a bank or get help with any agent?
Please advise
Regards
Posts: 75
Location: Toronto (416-7305795)
Posted on: 20-01-08 19:32:47
Location: Toronto (416-7305795)
Posted on: 20-01-08 19:32:47
Secured line of Credit is a credit facility that uses the equity in your home and you are able to borrow if required at a lower "secured" interest rate.
* Make interest payments only on the funds you use, not your total credit limit.
* Pay no operating costs.
* Receive free personalized cheques and pay no service charges for writing cheque.
Talk to your banker and he will be able to guide you.
Hope this helps.
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TS
Posts: 279
Location: Greater Toronto Arena
Posted on: 17-02-08 12:38:30
Location: Greater Toronto Arena
Posted on: 17-02-08 12:38:30
Quote:
Originally posted by Aurn
Hi,
I need som suggestion/advise about the LOC. I am in Canada from last 8 year and haven't started any sort of LOC yet. I am living in my own house from last 4 years and thinking to start a secure LOC. Having some concerns, please let me guide.
- Is this is good to take a Secure LOC?
- I have house Mortagage and Car loan, nothing outstanding on any Credit
card and have average credit history
- If I take secure LOC from any bank, this will impact on my Mortagage renwel
which is due next year?
- I will get higher mortagage rates due to the secure LOC on my house?
- for secure LOC, contact directly to a bank or get help with any agent?
Please advise
Regards
aurn, looks like u r in a good posn to get a line of credit.
you'd get a loc secured on you home. the money could be used for other investments .. most banks are givin' loc @ prime or prime plus a bit.
talk to your bank .. they'll be more than glad to extend u the credit.
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happily holi day!
Quote:
Originally posted by Aurn
Hi,
I need some suggestion/advise about the LOC. I am in Canada from last 8 year and haven't started any sort of LOC yet. I am living in my own house from last 4 years and thinking to start a secure LOC. Having some concerns, please let me guide.
- Is this is good to take a Secure LOC?
- I have house Mortagage and Car loan, nothing outstanding on any Credit
card and have average credit history
- If I take secure LOC from any bank, this will impact on my Mortagage renwel
which is due next year?
- I will get higher mortagage rates due to the secure LOC on my house?
- for secure LOC, contact directly to a bank or get help with any agent?
Please advise
Regards
______________________________________________________________
Hi Arun,
You have a Home. You have a Car. You have a Mortgage on the house. You have a credit card and its usage. You have an Average Credit History.
You have one Mr.P.Kalra on your side. He is running an information center and also a seminar on the usage of all of these facilities for FREE. Go there and sit down and collect all of the information that you ever wanted from him. Ask all of the questions and get the correct answers for each one of them.
First and foremost you can get ONE free copy of your Credit History from all of the Credit Agencies and keep it handy for any financial institution to view and use. You have the rest of the year to do it. This asking does not screw up your credit history. It is nice to know that. ( And they will not provide you with the scores anyway.)
There are Mortgage Brokers who will provide you with a Mortgage, if you have a decent Credit History, with a rate, lower than the Prime by one percent +/-. For this you will have to have an assessment done on your property and your list of Assets and Liabilities and any *Insurance that you have on yourself and also the property.
If you want to know all of these Mortgage Brokers use the Banks' Money to lend to you. Ultimately all the financial institutions will know more about you and how well you are doing in this new country of ours. Who cares?! What we need is their money (Other People's Money) for our usage for a fee.
There are a lot of Real Estate Brokers who will do a Free Estimate on the properties. You can use a string of them if you wish. (But make sure you have spruced up your property and kept it presentable, the interior and the exterior too. So also your Car) This is done only as a guide or a thumb rule, so when you go to a mortgage broker you can confidently say that "my property is worth so much". You can't go wrong there.
Now you are getting one step closer to the Line of Credit that you want to avail. If your equity in your property is more than fifty percent, you can come home laughing all the way. Now they even provide upto 80% of the value of the property without CMHC mortgage insurance. Isn't that great?
Now you know how much more you can get out of the assets you own. Also, you can just pay only the interest portion if it suits you. That will release a lot of your expense money for better usage.
Now for the Better Usage, You will have to find some nice instruments that will provide you with a decent return and still will provide you with a little safeguard in the investment field. That is another ball of wool of a different colour and I am sure there are a lot of wizards on this board that we can look upto for guidance on this CD forum.
We need a few Great Guys to guide us in this.
Hope they chip in with their suggestions so that we can all live happily ever after.
Are we there yet?
Freddie.
P.S. Here is the http://www.canadiandesi.com/read.php?TID=20059
Posts: 1628
Location: carl sagan's universe
Posted on: 18-02-08 16:27:37
Location: carl sagan's universe
Posted on: 18-02-08 16:27:37
Quote:
Originally posted by Aurn
Hi,
I need som suggestion/advise about the LOC. I am in Canada from last 8 year and haven't started any sort of LOC yet. I am living in my own house from last 4 years and thinking to start a secure LOC. Having some concerns, please let me guide.
- Is this is good to take a Secure LOC?
- I have house Mortagage and Car loan, nothing outstanding on any Credit
card and have average credit history
- If I take secure LOC from any bank, this will impact on my Mortagage renwel
which is due next year?
- I will get higher mortagage rates due to the secure LOC on my house?
- for secure LOC, contact directly to a bank or get help with any agent?
Please advise
Regards
If bullet 2 is as you say it is- you probably have a darn good score- not an average one- anything above 680 is very good. Just an educated guess based on you not having any balance on your cc- unless you did not pay for the last few months and all of sudden decided to pay it down fully...
Taking a secured LOC is OK.
Taking a secured LOC should not affect your renewal next year.
You will not get a higher mortgage rate solely due to having an LOC.
You can either go to the bank or thru an agent.
Secured LOCs are usually at prime. If your score is good , a bank will give you UNSECURED LOC also at prime. just bargain.
Personally, I suggest people to take an unsecured LOC, even if it is prime+1%.
I personally do not like anything secured to my property and would rather pay 1% more to the bank or credit union or trust company... but that's your call.
However if you play the game right you can get "UNSECURED LOCs" (notice the quotation marks) for as low as 2.99% permanently by juggling 2 or more providers- these are credit cards at leader rates, provided you have balances to transfer.
What is your purpose of applying for an LOC? Just to have it for unforeseen circumstances, or for renovation you plan to undertake, or for investment? If it is for a designated purpose where you know you will definitely be using it and you are agile enough- go the credit card flip route.
Enjoy!
