Home Equity Line of Credit

Every so often I am approached by my clients for a Line of Credit drawn on their home, or expressed in more technical terms, drawn on their home’s available equity. Although they have heard about Lines of Credit, they are not quite sure what they are and how they work. That is where a mortgage broker comes in handy with advice and a lending strategy for you and your family.

Credit Strategy

Many Canadian home owners do not have a Credit Strategy. Canada’s household debt-to-income ratio shot up to 163.4% in the second quarter of last year, meaning that the Canadian debt ratio is worse than that of our neighbours to the South. Recent increases indicate homeowners are not acting on warnings about unsustainable debt levels. The debt-to-income ratio in Canada is now

 

Credit Score by Equifax and TransUnion

Amongst many questions being asked in my practice, this is the most frequent one, and the unequivocal response is always: “Yes, you should.” But I am not stopping the sentence there and I tell my clients: “Yes, you should know your credit score, which is depending on your credit history.” About 75% of Canadian credit histories contain errors and it is good practice to check your own credit history once a year.

This is best done by