September 21, 2017

Debt Consolidation

We all go through periods where we are balancing multiple debts, interest rates and payment schedules each month.  One of the easiest and most effective ways to manage your cash flow and reduce your debt is to consolidate your various loans, lines of credit and credit card balances into a single loan with a set repayment schedule. By consolidating debt, you could save on interest costs and you will have just one payment to make.

Should you wish to consolidate your debts in order to reduce your monthly payments or pay off your debts in a timelier manner, there are a couple of options available.  By leveraging the equity in your home, you can either roll all your debts into your 1st mortgage up to a maximum of 80% LTV or obtain a 2nd mortgage.  This will make managing your debt simpler & more convenient while lowering your regular payments and improve your cash flow.

As interest rates are at a historical low, you could save yourself thousands of dollars by consolidating your debts.  Let me give you some examples of how much money you could save on a monthly basis, you will be amazed!!

Also, refer to http://mortgagesbycolleen.ca/best-2nd-mortgage-in-toronto/

 

Private Mortgages

When dealing with a private mortgage in Oakville & Toronto, the capital isn’t borrowed from a financial institution or a bank. The money is borrowed from an individual or a commercial enterprise. That is why before choosing a private mortgage you have to take into consideration the following points.

• A private mortgage should always have proper documentation. Put together the loan agreement in a way that it will always protect the interests of both parties, which includes the lender and borrower.
• For paperwork take the help of a lawyer, your tax accountant or another person in Oakville or Toronto with experience who can help you with the process. There are websites that also provide information on how to make contracts for private mortgages. It is a good practice to research these sites and use them as a guide to assist you in preparing your mortgage agreement.
• Include every aspect of the deal in the mortgage agreement like when you have to make payments, What happens if and when payments are not received on the specified date, where and how are payments to be made, is it possible for the borrower to repay, will the loan be insured and other details that are important to the loan and the payment.

Private Mortgage Toronto

Private Mortgage Toronto

• It is a good practice to secure the loan using assets that are worth the loan amount. This a good practice to be followed even if when are taking a loan from a friend or a family member. By doing this, if you happen to run into other difficulties with finances, the property or asset will have a lien on it and creditors cannot go after it. Another thing, by making the loan secure, it is sometimes possible for the borrower to save taxes. Also, you will not be obligated in case you are borrowing money from a family member or friend.