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Where do you go to get a home equity loan? Most of the time, it would be from a private lender. The banks would like to call their loans home equity loans, but they use the same criteria to qualify their home equity loans as their first mortgages. That is, they have the same credit requirements, income requirements and debt ratio requirements. Home equity loans should be qualified based on the equity in your property. If you have enough equity, then income and credit scores should not matter. These details that would derail an application at the bank is immaterial to a private lender. If you have poor credit and/or have trouble proving all your income, but would like to borrow against your home or

These two terms seem to be confusing some people. Some people seem to think they are the same thing. They are not. The terms describe different attributes of the mortgage loan. Note, a mortgage loan can be both a home equity loan and a second mortgage. Home equity loan is a term that describes the mortgage loan on the basis of how the loan is qualified. Basically, a home equity loan is a mortgage loan that is qualified mainly based on how much equity is in the home as opposed to the credit history or the reported income of the applicant. A second mortgage describes a mortgage based on the priority the lender have on your property. A second mortgage would mean that the lender

I really do not like to buy anything that I can’t see and touch. So when it comes to condos, I’d rather wait and buy it when it is built. Obviously, there are plenty of people who find it acceptable to put 10 to 20% down payment 2 to 3 years in advance of moving in., but there are some drawbacks to buying pre-sale condos. For one thing, it is hard to visualize how your place will finally look. Often you have a show room with some fully furnished rooms. You get a feel for the color scheme and material but you really do not get a feel for the space. Even if they have a sample suite in your floor plan, be aware that

Remember last year’s MAC Marketing scandal? Members of the MAC Marketing Solutions staff pretended to be foreign buyers for CBC TV. Two members posed as sisters who were waiting for wealthy Chinese parents to visit and buy them a condominium during the Chinese New Year break. This month the Real Estate Council of BC (RECBC) handed out its punishment. The former manager was fined $1250 and suspended for 2 weeks. While some may argue that this is a slap on the wrist, there is something else to be learned from this incident. The RECBC has no power over sale associates at these sale centres. This would apply to whether they work for the developer or the marketing company contracted to sell the property. As a

Finally somebody is so upset at the bank’s payout penalty that she has started a class action lawsuit. In fact, this was started 2011, but recently the judge has decided that this case can be “certified”, meaning it can go forward. Erin Sherry was hit with a $47,868.91 prepayment penalty 3 years into a 10 year fixed term from CIBC. This case will affect all mortgage payout penalties collected since 2005 by CIBC. The original judgement is here but basically the plaintiff contends that   1) The language in the contract around penalty calculations are so value it cannot be enforced. 2) If it was enforceable, then it should be 3 months interest rather than IRD 3) And if it was enforceable as IRD, it

The council for Newham, one of the poorest boroughs in England, has approved a plan for an ethical alternative to payday loans. It will be a partnership between government and financial institutions like credit unions to give residents affordable credit. Called MoneyWorks, it will also give good advice to help residents make positive financial decisions on debt and savings, build their credit rating and end their reliance on exploitative finance. Since last year, Britain has been on an offensive against payday loan companies some of which have had annual percentage rate (APR) of over 4000%. Yeah, I am not kidding.  Since then many have closed down and large ones have been fined. The Money Shop have been fined £700,000 and Wonga have been fined £2.6

This is maddening. I don’t believe this is still happening. Back in 2008, CBC marketplace did a piece highlighting the bank’s highly questionable practice of selling post claim underwritten mortgage life insurance. http://www.cbc.ca/marketplace/episodes/2008-episodes/in-denial You would think the exposure would force them to change their ways, but this article from the Star reveals that it is worse than ever. http://www.thestar.com/business/personal_finance/2014/07/04/banks_mortgage_life_insurance_has_flaws_roseman.html I guess when the industry makes billions from it, why would you stop voluntarily? I guess I was just naïve. Basically they check whether you qualify for the life insurance when you file a claim and try to deny you then. For example, you may be making your insurance premium payments for the past 15 years and all of a sudden your spouse passes away from

Opening a restaurant? And you have enough money so you don’t need a loan? If this is your first restaurant, then get the loan. Many people under estimate the costs of opening and running a restaurant as well as the amount of time it takes for the business to make a profit. Getting the loan also forces you to think everything through, because a lender is going to want to know everything. It is also beneficial for an impartial third party to review your plans. You will be surprised how many small businesses do not have a marketing plan. No matter how good your food is, if nobody knows you are there, you are not going to get any business. Many think they can rely

You need money for your business and you are wondering which one is better: a business loan or a home equity loan? The answer depends on your overall situation but here are some things to consider about each of these loans. Business loans are more complicated to get. Typically you will be required to have 2 to 3 years of accountant prepared financial statements, the current year-to-date in-house financial statements, your personal net worth statement, the account receivable listing, account payable listing and inventory listing. If it is a start up, then you will need a business plan, balance sheet and cash flow projections. They will qualify your loan based on their assessment of your experience, your credit habits, the business your in, how much