HELOC questions

[adamturner]

Hi there all. I am looking at getting a HELOC and was wondering how owing revenue Canada 9,000 dollars is going to affect this process?

Also, Do I need to use the same banking institution that i presently hold my mortgage with to get a line of credit, or do I just use a good broker to get one.

Any replies would be great .

Cheers
Adam

 

[Thomas Beyer]

QUOTE (adamturner @ May 17 2009, 05:24 PM) Hi there all. I am looking at getting a HELOC and was wondering how owing revenue Canada 9,000 dollars is going to affect this process?

Also, Do I need to use the same banking institution that i presently hold my mortgage with to get a line of credit, or do I just use a good broker to get one.

Any replies would be great .

Cheers
Adam
most brokers do NOT do a LOC .. but soem do ..

go to existing institution first .. then a 2nd like Scotia or CIBC or ATB or Royal .. usually they go up to 75% .. some to 80% ..

taxes owing is OK .. they may expect you to pay it off first .. depending on job situation / networth / income !

 

[adamturner]

QUOTE (thomasbeyer2000 @ May 17 2009, 07:52 PM) most brokers do NOT do a LOC .. but soem do ..

go to existing institution first .. then a 2nd like Scotia or CIBC or ATB or Royal .. usually they go up to 75% .. some to 80% ..

taxes owing is OK .. they may expect you to pay it off first .. depending on job situation / networth / income !
Does prime plus 2% sound about right for a loc from BMO.

What options are there to get a better rate.

 

[mortgageman]

QUOTE (adamturner @ May 17 2009, 07:57 PM) Does prime plus 2% sound about right for a loc from BMO.

What options are there to get a better rate.

That`s high. ATB will do prime plus 1.

 

[Thomas Beyer]

QUOTE (adamturner @ May 17 2009, 07:57 PM) Does prime plus 2% sound about right for a loc from BMO.

What options are there to get a better rate.
nope .. try P+1 or P+0.8 elsewhere .. BMO is NOT a great place for mortgages or LOCs ..

 

[kboughen]

QUOTE (adamturner @ May 17 2009, 07:24 PM) how owing revenue Canada 9,000 dollars is going to affect this process?
Prime +1 to 80% LTV is the norm for a fully qualified HELCO. A good Mortgage Broker with experience in residential investment properties has access to these.

However, fully qualified includes "no income tax owing", so you would need to take care of that first.

 

[EdRenkema]

QUOTE (kboughen @ May 18 2009, 06:15 AM) However, fully qualified includes "no income tax owing", so you would need to take care of that first.


So what if CRA owes me tax back, would that count in my favour?
A significant amount (over 7K)

 

[Thomas Beyer]

QUOTE (EdRenkema @ May 18 2009, 07:35 AM) So what if CRA owes me tax back, would that count in my favour?
A significant amount (over 7K)
sure .. ad it as an asset in your networth asset column !!

 

[kboughen]

QUOTE (EdRenkema @ May 18 2009, 09:35 AM) So what if CRA owes me tax back, would that count in my favour?
Yes, but I believe the original Post is the other way around with the client owing the government.

 

[EdRenkema]

QUOTE (kboughen @ May 20 2009, 07:11 AM) Yes, but I believe the original Post is the other way around with the client owing the government.


Ya I get that Kevin.... just being cynical.

BTW my interest free loan to the CRA finally came back to me (direct deposit)