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BC Debt Consolidation Loans Home Equity

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Pros Cons Debt Consolidation BCDebt Consolidation & Home Equity Loans Pros & Cons BC

 

child tax credit iconIf you are a home owner in BC with a mortgage, credit card debt, store cards, interest free deals that are expiring soon, personal (LOC) lines of credit, car loans or personal loans you could uses this how to techniques to better your cash flow and help improve your credit score. If you are a home owner with only a mortgage and low debts these debt consolidation techniques probably do not apply to you.

HOME EQUITY LOANS BCDebt consolidation is a simple process and this process happens every day in Canada. Debt consolidation can be a life changing for individuals looking to reduce their monthly payments. What are the signs that debt consolidation might be right for you and how should you determine what debt consolidation program you should undertake?

debt consolidation iconIn simple terms the combining of several small debts or different institution facilities into one more manageable payment is debt consolidation. This often means paying out higher interest or shorter amortization debts like personal credit cards, car loans, unsecured lines of credit, taxes, medical bills into on lower interest mortgage loan usually an interest only loan.

BC Debt Consolidation TipsThe Benefits of Debt Consolidation Mortgage Loans:

 

  • Lower Payment & Payment Management – By eliminating multiple payments at different times of the month and replacing these payments with one simple payment.
  • Lowering Your Monthly Payment – By providing an interest only loan or stretching out your amortization to reduce your monthly payment intern increases your cash flow.
  • Saving You Interest – In some cases when credit card interest rates are very high a much lower mortgage rate can give consumers greater interest savings on debt.

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Now a single monthly payment may be a bit misleading in terms of the true cost savings of a debt consolidation. The saying “if it’s too good to be true it probably is” applies. The catch is you can not significantly lower your monthly payment AND save thousands in interest costs. Debt consolidation can be an important step in managing your debts but home owners must understand a few vital facts:

 

  • Debt Consolidation & Mortgage Refinancing often to payoff bills is a poor idea in terms of a financial strategy. It is a bit of a yo-yo affect that keeps you in a cycle of debt consolidation.
  • Credit Cards & other debts used irresponsibly can lead you into a game that you will end up losing. The mounting costs of interest rates and costs associated with refinancing debt will eventually erode your saving or home equity.
  • Using debt consolidation to lower your monthly payments means banks & other lenders benefit by lending you money. If one end benefits by earning interest on their money then the borrower looses by paying higher rates to borrow money.

Debt Consolidation Home Loans ImageThe availability and easy access to debt consolidation can have a negative impact on borrowers in Canada. If it is so easy to consolidate debts then it is also easy to accumulate debt and this leads into old habits. Every time someone uses home equity to consolidate debt it lowers the equity in there home. Next time you look to put something new on your credit card or pay for a vacation on credit without the means to pay it off immediately you need to ask yourself “is this how I want to live?.

Mortgage BrokerFor a free assessment of your financial situation feel free to call me your Vancouver BC Mortgage Broker.

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Fall Home Maintenance Tips

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Fall home maintenance tips are important for all home owners and renters. Biggest tip to keep your loved ones safe this winter season is replace the batteries in your smoke detector. Learn some basic tips here to keep your loved ones safe this winter season.

Fall Home Maintenance Tips BCHouse Exterior Caulking Fall Home Maintenance Tips:

 

  • Foundation Cracks
  • Wires Entering Home
  • Windows Seals
  • Door Moldings
  • Door Mailbox

Fall Home Maintenance Tips BCHouse Exterior Fall Home Maintenance Tips:

 

  • Clear roof/gutters/downspouts of debris – (The freeze cycles can have a negative impact on your gutters and spouts of your home.)
  • Setup for driveway maintenance – shovels/salt/snow blower/plow (don’t get caught out on the street preparing your driveway for winter maintenance can keep your automobile safe as well as deliveries to your home on time)
  • Replace door seals to keep cold weather out – (keeping cold air out can significantly reduce heating costs)
  • Prepare Fireplace – (chimneys maintenance is one of the leading causes of house fires. Keep loved ones safe by making sure the chimney is cleaned once a year)
  • Insulate any exterior taps that are not frost free – (when the temperature dips these exterior taps can freeze and crack leading to a big mess and bigger renovation bill.)
  • Clean up the yard – (leafs and other debris can become a slipping hazard in the winter months. Keep liability down by cleaning the yard in fall)
  • Cover your pool – (Nice days come in the winter time. Keep children and pets safe by installing a pool cover or even better a fence.)

Fall Home Maintenance Tips BCHouse Interior Fall Home Maintenance Tips:

 

  • Smoke Detectors – “REPLACE THE BATTARIES” this is one of the most important winter maintenance tips.
  • Check your heating system – Having your heating system checked or cleaned can significantly reduce heating costs and possible point out safety issues that need to be addressed.
  • Prepare for winter power outages – Stock food that does not need cooking, keep battery’s flashlights firs aid kits & cat litter or sand for icy walkways.
  • Install a carbon monoxide detector – Learn more here City Of Vancouver Carbon Monoxide Detectors
  • Holiday Trees – if you plan on having a live tree make sure the watering container is well watered or opt for a artificial tree
  • Candles – Beware of all the possible hazards of having lite candles in your home. Even candles with protected shields can be knocked over by young children or animals.

long term disability iconLearn more about injuries and how accidents can be prevented with help from fall home maintenance tips.

 

 

Appraisal And Home Equity Loans BC

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Why Are Appraisals Needed Home Equity Loans BCWhy Are Home Equity Loan Appraisals Needed:

Ordering an appraisal is a common step when doing any mortgage even when getting a home equity loan. Appraisals are necessary when homes are being bought or sold or when people refinance or take out a 2nd mortgage on their home or other Real Estate . The appraisal helps the parties to the transaction determine current market value, property condition and these factors helps determine loan to value & marketability of the home.

Home Equity Loan Appraisal ProcessHome Equity Loan Appraisal Process:

When obtaining a home equity loan or 2nd mortgage, appraisals are generally required to determine value. If you have a high level of home equity some cases an appraisal can be waived in lue of an inspection or walk through (this is only in the case of Private Mortgage Lenders & not the case for Conventional Lenders like Banks). Generally 2nd mortgage loan to values has to be lower than 65% LTV and in a major metropolitan area like Vancouver BC or any city in Metro Vancouver, Victoria BC, Kelowna BC and/or close to the investor or their representative.

Option 1#: In some cases Mortgage Brokers can obtain a quote which lay out specific conditions as well as subject to an appraisal.

Pros:

  • Approved mortgage amount
  • Approved interest rate
  • Approved payment
  • Approved fees ie. Broker, Lender, Application etc.

Cons:

  • Loose leverage to negotiate Rate, Fees, Terms
  • Contracts are subject to Value & Committee Approval (this gives lenders an out if they see something in the report the do not like)
  • Unforeseen issues with the property that is brought to light after an inspection
  • Limited lenders offer quotes subject to reviewing the entire application including appraisal report
  • Appraisal is now in the lenders name and is a flag to other lenders that someone else turned this application down.

Option 2#: A Mortgage Broker can give you an estimate of rate fees & terms. Ordering an appraisal prior to presenting the application to lenders is in this Mortgage Brokers opinion a better way of keeping control of your information, help mitigate any surprises that come up in the appraisal report and offer up leverage to better terms in the mortgage offer.

Pros:

  • Allows a mortgage broker to structure the application to best suit the borrower
  • Enables a mortgage broker to negotiate more favorable terms
  • Keeps options open to possible negotiate the lowest rate possible
  • Allows a mortgage broker to switch to a new lender if the lender they are negotiating with is not willing to work with the clients best needs.

Cons:

  • Some lenders have a limited approved appraisal list
  • Peace of mind knowing exactly what you are qualified for subject to an appraisal

 

Online Home Equity Loans BCIf you are looking for a Home Equity Loan at a great rate and the best terms for you feel free to call us today. We love what we do and it shows.

 

Bounced Cheques & NSF’s

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Home Equity LoanWhat You Need to Know about Bounced Cheques & NSF Payments

Sure almost everyone has had a cheque bounce once in their life and you might think that it is not that big of a deal. Did you know that this can lead to larger financial problems and possibly criminal charges? If you are accused of deliberately defrauding someone by writing a bad cheque you could face criminal charges. As well if you have written a bad cheque in the past your bank or financial institution may put holds on the cheques you are trying to deposit. This can significantly impacted your day to day banking & possibly make you late on paying your bills or worse paying your mortgage payments.

Home Equity LoanOverdraft Protection & the Cost of Convenience

Overdraft protection gets offered by banks and financial institutions all the time as a way to cover yourself in the case that you may not have enough in your bank account to cover payments or cheques. Many people don’t take a look at the cost associated with caring this type of protection. Fees associated with this convenience can be as high as many payday loan companies. This is a cost that most banks will not disclose to their customers up front.

Home Equity LoanCommon Reasons Cheques Bounce & NSF Payments    

  •  Two people using the same bank account and not communicating each transaction to one another
  •  Not maintaining a balanced cheque book can cause NSF Payments & Cheques to Bounce
  • Missed entries in the cheque book so that it appears you have more money available than you actually do
  • Writing a cheque before money to cover the cheque is processed through your bank account
  •  Fraudulent Activity with your chequing account

Home Equity LoanLong-term effects of poor cheque writing and bookkeeping

Bounced cheques typically do not appear on your credit bureau but the affects of writing bad cheques over time do tend to trickle down and affect your credit. The penalties for writing bad cheques in most cases end up affecting people’s cash flow. With cash flow affected coupled with holds on cheques being deposited into bank accounts that have shown fraud, the repercussions are usually late payment or worse missed mortgage payments. Once your credit score gets affected due to these delinquencies in can significantly hinder your ability to refinance mortgage due to bad credit. This can lead you into a higher rate home equity mortgage product. Higher rate mortgage financing can significantly reduce your cash flow.

Home Equity LoanWhat Can You Do To Help Avoid Credit Issues

Now that you have a little more insight into the benefits of writing good cheques you can appreciate why it is important to keep your financial affairs in order to avoid bad credit financing.

Here are some steps to help you protect yourself:

  • Keep a careful record of your cheque book debits
  • Have one person write all the cheques and balance the cheque book
  • Use automatic withdrawals linked to credit cards (make sure you pay off your credit card every month)
  • Obtain a line of credit to help you in times of financial restraint. It is easier to ask for credit when you do not require it rather than waiting until you are in a position of need.