As life events beyond our control happen, sometimes we can't help but be gently guided toward an unhappy financial future. From unexpectedly having to pay for a funeral to having your fridge and freezer suddenly stop working. Situations like these will happen to all of us at various points, sometimes more than once, throughout our lifetimes. In these trying times we can make some pretty silly and rash decisions on where we borrow the money from in order to pay for it all. Ultimately landing us under a mountain of debt that we seem unable to climb out from under: https://www.debtconsolidation-loans.ca/canadian-guide-to-bankruptcy-and-how-to-avoid-it/ However today that changes, I want to show you how you can take out a Home Equity Line of Credit so you can once again take control of your finances.
The current market value of your home, minus what you owe on the loan, is your home equity. So if you had a $100,000 home loan for a $100,000 home, and had paid off 90% and the market had remained unchanged, your home equity would be worth around $90,000. If the market had changed and your home was valued to sell for $200,000, well your equity jumps up significantly, even though the original loan you're paying was only for $100,000, your home equity would now be worth closer to $190,000. The way banks actually calculate your home equity is based on many more factors than that rudimentary example.
If you've accumulated a bunch of debt, various loans, maxed out credit cards, unpaid bills and so forth, then combing all that debt into one lump sum will save you money. The interest you currently pay on all the various bits and pieces, not only rises as you miss or reschedule payments, but the stress that comes with finding money to pay the bills on time is personally taxing on you. Consolidating this mountain of arrears with a line of credit means you get a chance to get out in front of it.
When looking to use home equity to get yourself out of debt, you'll discover there are a few options:
The key difference between these two are how you're given access to the money. With a loan you get it all in bulk, upfront. Whereas with a line of credit you get the access to it as you need it.
Like most people who are in the red with their finances, you too may be thinking the loan is the better option. Though you should pause and ask yourself if it’s just because you're familiar with what a loan is and how it works. The reality is most people in debt never take out a loan big enough to clear all the accounts in one big swoop. They forget about companies that bill quarterly or the yearly subscriptions that haphazardly rock up.
A line of credit won't leave you hanging like that. You can get access to more money as you need it. So when those random bills do come in that you’d completely forgotten about, while a loan would have seen you run out of money, a line of credit allows lets you pay them off with no problem. Just because you may be unsure of what a line of credit can do, doesn’t automatically make the alternative, in this case a loan, the right option for you.
As bills come in and you require money to get yourself to a zero balance on the various accounts, you get access to it. If you do need a new appliance or car, you can still get access to the money as you need it. Zeroing an account with a line of credit means you haven't borrowed anything from the bank until you actually need it. You only pay interest on what you borrow and from the time you borrow it. As you aren't given a lump sum of money all at once, you aren't going to spend it on wasteful things that aren't helping your debt consolidate.
If you're already paying your mortgage off, you can pay off your mortgage plus a little bit more. Obviously the line of credit is attached to your home, though so is your mortgage. The benefits of paying a little bit of interest to one place, over paying multiple high interest amounts to a number of places, means you're already saving enough money for the debt consolidation line of credit to pay for itself. And when saving pays for itself, you know you're making the right decision.
Whether you're an investor or newlywed couple looking look to buy your first home somewhere in Canada, you should look no further than Nova Scotia. A simple visit to Halifax, the capital, and you'll soon see for yourself that the residents around beautiful Nova Scotia are not only warm and friendly, but ready to welcome you into their communities with open arms, all you need to do is find a home! With the vast selections of houses and properties available, there really is something for everyone. When it comes to Canadian real estate, Nova Scotia truly is the place to call home.
Compared with a lot of other locations across Canada, Nova Scotia's housing market has remained very stable. So while an investor might not be able to buy house and flip it within a few years for good ROI, it also means that the market is stable enough not to have the massive drops that go with those massive spikes. This is great news for most home buyers, especially those first home buyers.
The slew of offerings all over the region are a first home buyers dream. Whether you're just starting out and looking for a simple condo in Halifax so you can entertain guests, or want to settle down in the beautiful harbour countryside of East Petpeswick and find something the family could live comfortably in, Nova Scotia has it all.
Real estate pricing being very stable in the province is another great advantage for first home buyers new to the area: http://www.viewpoint.ca/ This not only makes banks immediately more open to home loan negotiations in the area, but if it ever comes time that you do want to sell, you won't make a loss. Compared with other markets in Canada, this makes a purchase here a really clever buy.
Right now it's a buyers market out there! With properties in over 20 areas throughout the region up for grabs, you'll definitely be able to nab a hot deal. Some of the biggest markets at the moment include:
As you can see, it's a real buyers market out there, from amazing large family homes, to awesome land packages or simple mobile homes. There truly is something for everyone.
Not everyone has a great financial history, so if you're one of those people looking for a new start, you'll see that NS in fact not only means Nova Scotia but New Start. As the market remains stable, even with a bad credit history, you'll find banks are more open to the idea of giving you the loan to make a fresh start in this stable housing market. Sure you‘ll still be paying a higher percentage of interest due to bad credit history, but your chances of securing that loan are so much higher.
When you want to make a steady ROI, the one statistic all investors want to see is established stability. Just as you wouldn’t want to invest in declining markets, you wouldn’t want to have a significant property evaluation followed by a huge real estate crash in the region, after having sunk your capital into a bunch of properties. That would be a terrible investment. As an investor you want to get your money back in a stable way. Nova Scotia properties can do this for you. Whether you need residential or commercial premises, you can be rest-assured that the region will remain solid for years to come.
As you can see, Nova Scotia has plenty on offer. Be it a home, piece of land or something in-between, you can find it all here. The sole fact the area is so well renowned for its stable market that it highly increases your chances to get a mortgage if you have bad credit, well doesn’t that say it all? Who wouldn't want to buy a home in the beautiful Nova Scotia?