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1
vote
1answer
46 views

Is it possible to use an RRSP mortgage to pay off a line of credit?

I'm told that the only requirement for obtaining an RRSP mortgage loan, is having the mortgage insured by a recognized mortgage insurer - and that the insurers can sometimes be negotiated with, with ...
4
votes
1answer
84 views

Personal Line of Credit and Credit Utilization rate

Let's say I have a Personal Line of Credit for 20,000. If I use 80% of it, will it have the same effect (on Credit Scores) as that of a Credit Card with 80% utilization?
1
vote
1answer
46 views

Secured line of credit vs collateralized loan

Is there a difference between a collateralized loan and a secure line of credit? Both seem similar to me in that you are borrowing money against equity that you own (house,car, gold whatever)
3
votes
3answers
126 views

Can I draw funds from a personal line of credit to pay its own monthly “minimum payment”?

I can guess the answer to this question, but I can't figure out why. So here goes... I've got an unsecured line of credit with a limit $30,000. The annual interest rate is 6%, compounded daily. ...
-4
votes
1answer
75 views

Do I need to repay back my line of credit in the form of monthly payments?

When I take a line of credit, do I start making monthly payments, like with a mortgage? Or do I make a lump sum (principal + interest) payment at the end of the term of the line of credit? Or is there ...
0
votes
1answer
80 views

Appropriate model for deferred costs as a line-of-credit

I have a business situation where one party will agree to defer some costs until a future date, perhaps two years, but no fixed time. This principal will increase linearly over the course of 6 months ...
1
vote
1answer
156 views

What do I need to know before opening a line of credit?

I'm considering opening a line of credit. The main purpose of this LOC would be to cover myself if I overdraw my checking account (I do this occasionally, and pay pretty steep fees every time). With a ...
5
votes
2answers
286 views

Cash out retirement account or sell and downsize the house to pay off line of credit?

I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear. I can only come up with 2 scenarios to clear this amount based on my home equity and ...
3
votes
1answer
254 views

Defaulting on an unsecured line of credit

When I have an unsecured line of credit, it is not backed by any assets I hold (e.g:car). So if I fail to pay it back because I lose my job, how will the bank get its money back?
1
vote
1answer
195 views

Pros and cons of cashing out my RRSP in order to repay HELOC used to start a business, now failed?

I'm in my mid 40s and a few years ago I used my HELOC to start a new business. I was paying interest only on the loan in hopes of paying off the HELOC in lump sum amounts once the business was ...
5
votes
3answers
1k views

Should I get a personal loan or a line of credit?

Looking to buy a new computer. While I can afford to buy it outright, I'm looking to get a loan to help make my credit a touch better. But I'm wondering if I should just go with a line of credit, ...
4
votes
1answer
111 views

What kind of information can I use when trying to convince my bank to lower the interest rate on my line of credit?

I'm looking to lower the interest rate on my line of credit, and, before calling up my bank, I am wondering what kind of information I should have prepared that I can use as arguments when trying to ...
4
votes
3answers
793 views

I've spent a lot in my line of credit, when should I refinance and transfer the debt to my mortgage?

There is enough equity in my mortgage to cover my line of credit - when is it a good idea to pay off my credit by increasing my mortgage?
3
votes
5answers
3k views

When should I open a “Line of credit” at my bank?

I'm new to the concept of "line-of-credit", and my banker says I should be able to open one based on the number of stocks I own. I have no mortgage. I'm told that I'm able to deduct my interest on ...
5
votes
1answer
74 views

Can a Line of Credit be re-financed? Is it like a mortgage, with a term?

I have a home equity line of credit, for which I have had trouble making large payments against since my career change. I'm wondering if I should be concerned over the interest charges, and if there ...
7
votes
4answers
2k views

For a major expensive home renovation (e.g. addition, finished basement, or new kitchen) should one pay cash or finance with a loan? Would such a loan be “good” debt?

This other question is similar, but was referring to a specific renovation/repair (new flooring) that, while expensive ($1500), isn't very expensive – it's feasible to consider saving up for ...
4
votes
3answers
1k views

Use retirement to pay off debt: Should I cash in RRSP to repay Line of Credit?

The amount I have in RRSP savings is exactly equal to the amount I have in Home Equity Line of Credit debt (significant, but aside from home mortgage, my family has no other debt). I know if I ...
7
votes
5answers
890 views

Home Renovations are expensive.. Should I only pay cash for them?

Should I save up enough cash to do home renovations, or can I take out a loan? Our house needs a new kitchen floor as the linoleum is actually ripped in some areas, and the wood is exposed... This is ...
8
votes
2answers
399 views

What's better: An unsecured line of credit, or a secured line of credit like a HELOC?

I've heard that I can get a lower interest rate with a secured line of credit. If I qualify for a secured line of credit, why would I still want to use an unsecured line of credit?