Awesome sea to sky road trip !!
  
When it gets hot head to mountains,is what we decided to do this year. Whole family headed out to Whistler and it was as amazing road trip. I've visited this resort many times but every time I can find some new activity and some new spots to explore.
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.
Top 10 Rules for Success
Check out these short videos on three of the most successful people of all time, Oprah Winfrey, Bill Gates and Warren Buffett. I find it extremely helpful to hear how the most successful people approach the world and think about their time and opportunity. Enjoy!
Here's a bonus article on why all three like to read!
Oprah Winfrey's Top 10 Rules for Success
She's a media proprietor, talk show host, actress, producer, and philanthropist. She's best known for her talk show The Oprah Winfrey Show, which was the highest-rated program of its kind in history.
Bill Gates's Top 10 Rules For Success
He consistently ranks in the Forbes list of the world's wealthiest people. He's one of the best-known entrepreneurs of the personal computer revolution. He is also the second-most generous philanthropist in America, having given over $28 billion to charity.
Warren Buffett's Top 10 Rules for Success
He was the single most successful investor of the 20th century. Time magazine named him one of the most influential people in the world. He's worth over $70 billion.
|
