4/29/2023 0 Comments Vancity.com mymoney![]() ![]() ![]() Despite the media hype, consumers need to be very cautious before assuming these loans are good credit options. Sounds nice and friendly, but I have a lot of issues with these types of loans. They say that this loan offers flexible payback schedules, it “can help you establish a credit history”, and you get quick approvals. They call it the Vancity Fair & Fast Loan™, and if you qualify you can borrow from $100 up to $1,500 and pay it off over up to 24 months. Payday lenders are a lender of last resort, where you go to borrow when a “regular bank” won’t give you a loan.īanks and credit unions don’t offer payday loans, so I was somewhat surprised to see that Vancouver City Savings Credit Union, a large credit union with 57 branches and $17.5 billion in assets, has decided to start offering payday loans. They carry a very high interest rate, and since you are required to pay them back with your next paycheque they often lead to an endless cycle of obtaining a new payday loan to repay the one you got last week. To help members make their dreams of owning a home a reality, we are happy to offer innovative financing options, like our Mixer Mortgage™ for first-time homebuyers.To put it mildly, I’m not a big fan of payday loans. Community groups who want to build co-housing.Friends who would like invest in a duplex or other multi-unit building.A multigenerational family looking for a single-family home where young adults can get a start or parents can age in place.This option is becoming more popular as people look for creative ways to achieve their goals, such as: If saving for a down payment on your own feels out of reach, it might be worth considering a joint mortgage with other family or friends to share the costs. If you do, you may need to show where the money came from and confirm it’s non-repayable by providing bank statements and a letter from the gift-giver. You can put gifts of money from family and relatives towards a down payment. Visit placetocallhome.ca for more information on the program and qualification requirements. The program offers 5 or 10% of the home’s purchase price to put toward a down payment, which lowers your mortgage carrying costs. Leveraging government programs.Ĭanada’s First-Time Homebuyer Incentive (FTHBI) Program helps make homeownership more affordable for qualified first-time homebuyers. Before you make a withdrawal, check the Government of Canada Home Buyers’ Plan to get the most up-to-date information and make sure you follow the rules to avoid taxes or penalties. You may be able to withdraw a portion your RRSP savings to buy or build a qualifying home through the Home Buyers’ Plan. Explore smarter ways to pay off your debt. If you’re interested in consolidating your debt, we can help you find a solution that makes sense for you. Small loan balances with higher interest rates Eliminating smaller loans, including balances you hold with other financial institutions, could reduce your overall debt load.Car loans and leases Both car loans and leases count as debt, but consolidation isn’t always advisable, depending on the amount of your loan or lease.Student loans According to Statistics Canada, around half of college and university students owe debt at the time of graduation, which can delay their home-buying plans.This flexibility means that when your life circumstances change, you can make changes to your mortgage too. Credit card debt At any time, you can convert this variable mortgage to a fixed-rate mortgage for the remaining term or longer.Every debt payment you have reduces the amount you can borrow for your mortgage.Ĭonsolidating debt may include items such as: ![]() Our sustainable wealth management team can help you put together a savings and investments plan.Īs a first-time home buyer, you may want to consider consolidating your debt under a single loan to reduce your interest rate and monthly payments. At maturity, you can renew your term deposit, invest in a different term deposit, or withdraw the funds if you’re ready to buy a home. If you’re planning further ahead, 3 or 5-year non-redeemable term deposits offer a higher rate on cash you don’t need to access readily.If you plan to buy a home soon, our high-interest savings account or 1-year cashable term deposit can help you earn higher interest rates while keeping your money accessible.A bank reference letter from your previous financial institution (if you came from outside the US).Ĭhoose lower risk savings options to meet your unique needs:.An international credit bureau report (if you came from the US).If you are new to Canada, it is important for you to start building a credit history right away. ![]()
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