Forclosures/Power of Sales by Location
  
Power of Sales Newmarket
Power of Sales Georgina
Power of Sales Barrie
Power of Sales Innisfil
Power of Sales Richmond Hill
Power of Sales Markham
Power of Sales Toronto
Power of Sales Oshawa
Power of Sales Whitby
Power of Sales Vaughan
Power of Sales Mississauga
Power of Sales Whitchurch-Stouffville
Power of Sales Milton
Should I Consider a HELOC?
If you have started to build up equity in your home or if you want to get access to some equity in your home, then you may consider a HELOC (Home Equity Line of Credit) instead of a mortgage.
There are a number of lenders who offer HELOC's, they all have different names for them and they each can have different options, so it's important to be aware of these before you choose.
Like the graphic above shows, when you refinance your home or when you wish to arrange a HELOC, the maximum HELOC limit can be just 65% of the value of your home. You can finance up to 80% of the value of your home, therefore the additional 15% must be set up as a mortgage with principle and interest payments.
Some advantages of a HELOC... 1) you can draw down any amount (up to the limit) that you need. 2) you can pay off the revolving portion without any penalty 3) your minimum payment is just the interest owing each month. 4) you can use the money for what every you want, investment, renovation, vehicle purchase. Therefore, a heloc can give you flexibility and can be great for an investor or business owner who have need for large lumps sums of cash and then receive large lump sums of cash later.
Some dis-advantages of a HELOC... 1) the interest rate is typically set at prime plus 0.50% which is typically higher than a comparable fixed or variable mortgage rate 2) some clients struggle to pay off the balance because they are just making minimum payments and haven't created a discipline or habit to make larger payments. 3) access to lots of available cash, makes it tempting to use the money to purchase something before you need it, or use it for monthly living costs.
A HELOC can be a great tool and a great tool I have often recommended, provided it's used wisely. If you want to learn more about how a HELOC can fit with your circumstances, give me a call or send me a quick email.
Variable Rate Went Up .25% - What will happen to your payment?
*** #'s are based on 2.2% going to 2.45%
.25% Increase with a 30 Year Amortization Mortgage
$100,000 + $12/month
$250,000 + $30/month
$500,000 + $60/month
$750,000 + $90/month
$1,000,000 + $120/month
$1,500,000 + $180/month
$2,000,000 + $240/month
$3,000,000 + $360/month
.25% Increase with a 25 Year Amortization Mortgage
$100,000 + $13/month
$250,000 + $32/month
$500,000 + $65/month
$750,000 + $98/month
$1,000,000 + $130/month
$1,500,000 + $195/month
$2,000,000 + $260/month
$3,000,000 + $390/month
.25% Increase with a Line of Credit
$100,000 + $21/month
$250,000 + $52/month
$500,000 + $104/month
$750,000 + $156/month
$1,000,000 + $208/month
$1,500,000 + $312/month
$2,000,000 + $416/month
$3,000,000 + $624/month
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