How to borrow using the value of your home | Loans Quebec

Owning is expensive, especially when you add that expense to all the other expenses you have as an adult. That’s why many Canadian homeowners choose to tap into their real estate holdings in order to be approved for a loan. Let’s see what it means to use your home to get a loan.

What is the equity of a home?

Image result for home equity As an owner repays his mortgage over the years, he begins to build the equity in his home. The more he pays his mortgage, the more he acquires equity for future use. Your net worth will also increase with the increase in the value of your property and the fluctuations of the real estate market. Many homeowners choose to use their net worth to finance a large expense. This expense could be something that adds value to your home, to pay off a car loan or send the kids to school. Whatever the cost, the capital will be used to repay the loan.

Do I have a real estate value?

If you have repaid your mortgage for several years, you probably have at least a bit of equity. As mentioned above, you build equity when you repay your mortgage. If you have decided to use the equity in your home to get a second mortgage, you will need to have your home assessed to determine how much it is worth. But, if you are just curious about how much you have in net worth and have a general idea of ​​your value before contacting your lender, here is an easy calculation. To know how much money you own, you must know the value of your house (in this case, you can use the value of your home when you bought it, remember that the actual value will probably be different) and how much more you owe on your mortgage.

Value of the house = $ 376,000

80% of the value ($ 376,000 x 0.8) = $ 300,800

How much you still owe in mortgage = $ 232,000

80% of the value of your home – amount you owe the mortgage = $ 68,800

In this case, you can expect to receive a second mortgage for $ 68,800 or less.

Be aware that the number you will get from the equation above is just an estimate because you will not really know the current value of your home until it is evaluated.

How can I access my home equity?

In general, homeowners use three traditional methods to access the equity in their home.

Home Equity Loans

What are they and how do they work?

A home equity loan is a loan that uses your home as collateral. It works like any other type of secured loan. Your lender will allow you to borrow a specific amount of money, depending on the value of your home. You will have to pay interest and make interim payments.

How can I get one?

To obtain a home equity loan, you must own a home, which must be valued by your lender, have repaid a large portion of your mortgage and be financially secure enough to handle more debt.

How to use it?

With a home equity loan, you will be able to borrow up to 80% of the appraised value of the property, less what you have to pay on your original mortgage. You will have to repay both mortgages at the same time.

Home equity loans are also common for those who prefer to use a large amount of money to finance something in a short period of time. In fact, according to real estate financial experts, home equity loans should be repaid within 5 years due to the high interest rates associated with this type of loan. Since a lender will take a big risk by lending what could be 80% of the value of your property and will not charge it for mortgage loan insurance, the interest rate will be higher than for traditional LCDVD.

LDCVD (Home Equity Line of Credit)

What is it and how does it work?

There are some notable differences between a home equity loan and a home equity line of credit. The first difference is that a LDCVD is just a revolving line of credit, as opposed to a loan, which is a large sum of money. For this reason, you can use this line of credit to your liking and regain access to the full limit when you repay the balance.

How can I get one?

You can open a line of credit with your bank or most traditional financial institutions, as well as private mortgage lenders. However, banks usually require a high credit rating in order to qualify you. A home equity line of credit will often be a more reasonable and attractive offer for homeowners because the rate of interest involved will be lower than that of a home equity loan. Potential borrowers must first have their assets assessed to ensure they have enough equity to qualify for a HELOC. These credit lines are only granted to borrowers with at least 20% of the net worth of their property.

How to use it?

You are able to open an LDCVD up to 65% of the appraised value of your property. However, if your lender combines your line of credit with the rest of your mortgage, you will be able to increase the borrowing limit to 80% of the estimated value of the home when you close your mortgage. Once your line of credit is secured, you can borrow as much as you want, as long as you meet the minimum monthly payments.

Refinance of your mortgage

What is it and how does it work?

If you decide to refinance your home, you may have to pay a penalty for breaking your first mortgage loan. You then negotiate a new contract with your lender so that you can enjoy the equity of your home in the process. If you do not want to pay the penalty fee, you can simply wait until the end of your term. As with a home equity loan or HELOC, you will be able to borrow up to 80% of the equity in your home, with the exception of what you have to pay on your first mortgage.

How can I do this?

Again, you will need to have your property assessed. You will then need to break your original mortgage contract and renegotiate a new one with your current lender or another. Just be aware that if you decide to refinance your mortgage in order to access your capital, you may have to pay a prepayment penalty fee and have broken your mortgage contract. However, if your mortgage is ready to be renewed or if your lender’s penalty fees are not too high, refinancing may be the most reasonable option for you.

Some of the benefits of using the equity in your home

 <strong>Some of the benefits of using the equity in your home</strong>

  • You can use your capital to strengthen the value of your home – Since your home is an asset, you can use your capital to finance any renovation you could do, increasing the market value of your home, if and when you decide to sale.
  • Interest can be deductible on your tax return – If you decide to use the extra money from your second mortgage for investments that will generate income, it is possible to use the interest for a tax deduction.
  • You can use your equity for whatever you want – While some homeowners choose to use their home for renovations or to finance other properties, others will use it to pay for their education or that of their children or even To go on holiday. You can also use your equity to take care of any other higher interest debt that you may have on your back.

Some disadvantages of using the equity in your home

  • You have to pay various fees before you can borrow – using the equity in your home is certainly not a free service. There are a number of costs you must pay before you can access them, such as fees for appraisal, application and legal documents.
  • Variable Rates = Variable Interest Costs – for variable home equity loans and lines of credit, monthly rates will vary depending on your lender’s standards and the real estate market. You may choose to borrow at a floating rate because initially the rate may be cheaper than the fixed rate option. However, be aware that if you choose a floating rate, your interest rate may change. So, it is important to take this into consideration before deciding to use your house capital.
  • Using your capital for investment purposes involves its own risks – If you decide to use your capital to make unprotected investments, not only will you have to pay taxes, but like any unprotected investment, there is a possibility that you could lose your money because of the fluctuation of the stock market.
  • Inability to make payments can result in the recovery of your home. – The most important disadvantage of borrowing the equity in your home occurs when a homeowner is not responsible for the credit that has been granted. Borrowing against your house works the same as any other type of secured loan. You must make your payments. Being in default of payments can lead to seizure of your home. So before taking a second mortgage, you must be absolutely certain that you will be able to make your regular payments.

When it comes to borrowing and your home, your credit rating is important.

Mortgage Rules in Canada

 <strong>Mortgage Rules in Canada</strong>

In October 2016, several changes were made to Canada’s housing rules. The Liberal government is trying to get new buyers to buy only homes they can afford. In fact, mortgage rates have been falling steadily in recent years, making homes in many provinces more affordable. However, the Canadian government is worried about what will happen if interest rates rise in the coming years, which is likely to happen. Some changes have been implemented to reduce the risk for borrowers and lenders. For example:

  1. On October 17, 2016, the Canadian government stated that anyone interested in acquiring an insured mortgage will be subject to a “stress test” to determine the likelihood that they will be able to make their monthly payments, if and when interest rates would rise.
  2. In previous years, foreign buyers purchased Canadian homes, renovated and sold them, but did not pay taxes on homes as principal residences. For this reason, homeowners must now inform the Canada Revenue Agency about the sale of their principal residence during the tax season. However, Canadians who sell their principal residence will be exempt from capital gains tax.
  3. Until 2016, the Canadian government has assumed 100% of the risks associated with insured mortgage buyers who are in default, without risk to the lenders themselves. The government is now planning to implement a proposal that will put a certain percentage of the risk on the lender’s shoulders.
  4. As of November 30, 2016, a number of general requirements have been issued to prospective purchasers seeking government-backed mortgage insurance for low-ratio mortgages:
  • An amortization period of 25 years or less is required for all insured mortgages.
  • The house that the buyer is trying to buy must cost less than $ 1 million.
  • The property must be occupied by the buyer in question.
  • The buyer must have a minimum credit rating of 600

Consider all your options

Do not forget to consider all of your options before deciding to buy a mortgage, open a line of credit, or refinance your home to access your capital. Each option comes with its advantages and disadvantages. So, it is best to talk to a mortgage professional before making a serious decision about the equity in your home.

5 tips so that February 14 does not break you

The Day of love and friendship or Valentine’s Day is a very special day for many. Giving a gift or organizing a romantic outing is a good way to show your love, but letting yourself go for the moment and spending too much can cause a mismatch in your personal finances. That’s why we share some tips to prepare your portfolio this February 14.

Before that, we must make two parentheses to understand why we celebrate this date.

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Why is it celebrated on February 14?

According to the Encyclopedia Britannica , this date has origins in Ancient Rome with the party called Lupercalia , which was held on February 15. The reason for the celebration was the arrival of spring, which included fertility rites. This was something that the Catholic Church did not agree with, so in 496 BC, Pope Gelasius I decided that February 14 or Valentine’s Day would replace the Lupercalia.

And why Valentine? The truth is that no one is very clear, but there are several stories of people called Valentine, who suffered or died defending what love represents.

One of the most emotional and accepted legends goes back to the Roman Empire, when a priest named Valentin married the young people despite the fact that Emperor Claudius II, banned marriage to all young men, because he believed that single soldiers were more efficient than married. Valentin was in disagreement and continued to celebrate marriages in secret, until he was discovered and imprisoned.

Some legends say that Valentine fell in love with the daughter of his jailer and when he learned that the emperor sentenced him to death, he left his girlfriend a farewell letter that at the end said “De su Valentín”. According to legend, the priest died on February 14, 270 AD

It was until the fifteenth century, when the celebration of Valentine’s Day as Valentine’s Day became popular in France and Britain, and then in the rest of the world.

How to spend on February 14?

The National Commission for the Protection and Defense of Users of Financial Services ( Condusef ) advises 5 ways to take care of your finances on this date and do not end up in debt.

1. Plan

Each month, make a budget of your expenses based on your income, so you will know how much money you have available and you can set an amount for the celebration of February 14.

A very useful tool that can make your life easier is Finerio . The platform allows you to create customized budgets to which you follow automatically. Having a budget allows you to contemplate your fixed and daily expenses, in addition to those corresponding to occasions such as February 14 or any other important date, so you can celebrate without affecting your finances.

2. Give something original

Many times we give away unnecessary and little special things, which after a while end up in the trash, as we saw in the statistics. So identify the interests of your partner, what you need and buy something that makes you happy.

The best gift is not always the most expensive. Show your partner that you know her and that you thought of her gift with care. That is worth more than the price that comes on the label.

On the other hand, you can think about the moment you will share with that person, rather than a gift. The experiences give us more lasting memories, so plan a small outing on the weekend, go on a picnic, visit a museum or some show. It is not about celebrating a specific day, any date can serve to show how much you love your partner.

3. Compare prices

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When you identify what you can give according to your budget, do not buy in a hurry. Currently it is very easy to enter online stores and verify the price, as well as the characteristics of the product or service. Before making your purchase, compare prices in different stores.

4. Use your credit card carefully

This means of payment helps you manage your cash flow and get some rewards; however, be careful, if you go over the account and can not pay on time, interest will grow like foam and your credit history will be affected.

5. Set savings goals

The best way to save is to reduce your expenses, so do not overdo it. If you do not have enough money to buy a super gift, share your situation with your partner, sure you will understand and find a way to have fun without spending too much.

Even if each boyfriend or girlfriend makes a gift, they can also have a common goal, like going on a trip. Save together and in that way you will fulfill your goals faster. If you want to know some tips to save on your trip, read our article 7 great ways to save to travel without suffering .

Image result for financial goals

Whether you celebrate on February 14 or any other date you give a gift to your partner, you should always plan, know their tastes, compare prices and consider making long-term plans, such as saving for a trip.

Do not feel pressured by the expenses of February 14, remember that the story of why Valentine is celebrated is unclear. For the only thing that you should worry about is to freely share part of your life with another person, without impositions of marketing. future of money?

What happens when your co-signer declares bankruptcy? | Loans Quebec

Image result for cosigner bankruptcyWhen you want to borrow money, but your credit history does not allow you, the co-signer is the ideal solution to the problem. The co-signing of the loan opens many closed doors before, allowing you to get the loans you could never have had. A co-signed loan could allow you to buy the car you need, buy the house of your dreams, or simply manage your daily finances.

While the receipt of the first loan is an exciting event in everyone’s life, it is of great importance to choose the co-signer. A good co-signer could be the help you need so much, allowing you to show the creditor that you are financially responsible. A co-signer who has financial problems could, conversely, threaten your financial situation.

It goes without saying that banks only accept co-signers who have good financial records, but it is difficult to accurately predict what will happen next only based on numbers. The co-signer could be in perfect financial health now, but a future job loss or financial emergency could negatively affect their stability. Because of this, it is important that you choose your co-signer thoroughly and that you are ready to make all the payments yourself.

The loan

Image result for loan In general, the co-signatory’s mission is to reduce the risks associated with the loan and to help you get the money you need. The co-signer is not there to meet your daily needs or cover your uncontrolled expenses. If you have the help of a co-signer for the right reasons, you should be able to repay your loan without any problem, even if the co-signer declares bankruptcy.

Understand that the presence of a co-signer is not an excuse to stop making payments. Also, if your co-signer declares bankruptcy and you depend on him, be sure to notify your creditor and ask for advice so that he offers you other alternatives.

You are by yourself

Once your co-signer declares bankruptcy , he is not legally obliged to make the payments for you if you are unable to do so. This may seem like a problem, but, in fact, it all depends on your current financial situation. However, the creditor might be worried and think that you will be unable to make the payments yourself. In such a situation, the best thing to do is to continue making payments on time and in full, which will encourage your creditor to trust you and, therefore, improve your credit history.

Your credit report

One of the problems when your co-signer declares bankruptcy is the possibility of having on your credit report the mention “participation in the bankruptcy”. However, be aware that this will not affect your credit history, which will allow you to improve your credit score while making the monthly payments. At the same time, keep an eye on your credit reports, to make sure that nothing unexpected and strange is there. Also, even if the co-signer declares bankruptcy, remember that you are not the one who did it, so do not panic.

If you can not make payments

Image result for can't make payments Your credit history will be negatively affected in case you are unable to make the payments. If, for example, you use the loan money to buy a car, the creditor may come to seize the car in question or, worse yet, the creditor may sue you for the amount you owe him. . In fact, when your co-signer declares bankruptcy, you become the only person legally responsible for the loan and for the payments that come with it.

In conclusion, if you expect the help of a co-signer to get a loan, make sure you choose your co-signer. Remember that the co-signer should reduce the risks associated with the loan in the eyes of the creditor and not make the payments for you. A loan is a big undertaking, so be sure your co-signer is in excellent financial health. Do your research and take the time to analyze the options available to you. Thus, you will avoid any negative impact on your credit history even if the creditor declares bankruptcy or the proposal of the consumer .

Fit for Spring – Tips and Tricks to Get Started in Spring | Borrow money by small loan – now 1000 euros for new customers

In the gym you can improve your own fitness in spring with little effort. The choice of fitness offers in the studios is great: vibration plates, EMS training, courses or rather classically train with equipment? You are spoiled for choice. But not every studio is suitable for everyone. If you want to do sports specifically and improve your fitness, then you should definitely look for a studio that suits you and your needs. We’ve put together a few things to keep in mind when choosing a gym, and also tell you how to save money on the many fitness offerings.

Improve fitness in the spring and save money with simple tricks

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“Fit for the spring” is for many the motto with which one starts the spring. But to make sure that you do sport in a sustainable and motivated way and get fit for spring, you should create a training plan. Of course you also need a fitness outfit for outdoor and fitness studios. We recommend you to pay particular attention to suitable running shoes and fitness functional clothing. If these requirements are fulfilled, you can look for a suitable studio for the training.

If you want to specifically train your muscles, you should look for a studio that offers a wide range of fitness equipment. It is also recommended to use gyms with vibration plates or EMS training (electric muscle stimulation). These types of training focus on the muscles. These are activated and stimulated by stimuli. However, studios that offer these types of training are often a bit more expensive than the next-door gym. Therefore, we recommend you to arrange a trial before completing a membership. Test the gym extensively your choice and only become a member where you feel good. Are you missing the necessary money for a membership or fitness outfit? This is not a problem as you can easily borrow money with a small loan from Xpresscredit.

Likewise, you can also focus on fitness during sport. Then a studio with many different courses is perfect for you. In order to stay motivated, a partner is recommended for the regular training. In the best case, you can even buy a fitness outfit together with your fitness partner. A joint trial in the studio you start then fresh and motivated. So that you not only start well in the spring, but also get fit through the spring.

Save money through outdoor fitness with fitness gadgets and appsImage result for outdoor fitness

Maybe you do not want to work out in the gym and still be fit for the spring. Outdoor fitness is very relaxing and at the same time refreshing. In order to keep an eye on your fitness plan, it is advisable to measure your fitness activities. So you always know how close you are to your goal. There are now numerous offers of fitness gadgets and apps. Regardless of whether they are running watches, gadgets for the measurement of vital signs or smart activity trackers and calorie counters, let yourself be advised in the specialist market and decide for yourself which gadget best suits your fitness plan as well as your goals. With fitness apps, you can also support your training. Many fitness gadgets are connected to fitness apps to customize your workout. There are now a variety of different fitness apps that are easy to use and allow a great workout. If you need money for the small smart companion, so you can easily and conveniently borrow money on a microcredit with Xpresscredit.

With Xpresscredit fit in the spring

Many people lack the money to start the sport in the spring and to improve their own fitness. The solution to this problem is the Xpresscredit Titus Groan Bank. The Xpresscredit of the Titus Groan Bank is a small loan that you can quickly and easily apply online. If you need money to join the gym or do your fitness shopping, you can borrow up to $ 1500 on Xpresscredit and get ready for Spring.

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