Blogs

Blog Categories

Mortgage Market Updates and News

What to do, what to see? In Port Alberni, BC

Last day for Home Equity Lines of Credit at high ratios for some lenders today

Posted on Sep 5, 2012 in Mortgage Market Updates and News

Port Alberni Mortgage Broker

Further to my last article written on the reduction of Home Equity Lines of Credit availability http://portalbernimortgage.com/blog_article.php?pid=811 some lenders are cutting off their HELOC applications over 65% loan to value as of today. While there are still a couple of lenders out there offering HELOCs from 66-80% loan to value, the number is getting smaller and smaller.

As mentioned in my last article, HELOCs have been under fire the past few years being reduced from 90% to 80% and now down to 65%. Likely the reason for this continuing reduction is the fact that the debt is revolving and many people build up their balances and don't even begin to pay them down for many years. This makes them a bit of a liability and risk to lenders as typically interest only payments, and no principal, are paid for several years. 

Unfortunately many people do use HELOCs responsibly, and those people are now going to have a harder time getting new HELOCs due to the recent changes. Many people use them as part of the popular investment method, the Smith Manoeuvre as a readvancable line of credit, as well as many people use them just to have the flexibility to pay their mortgage off without being subject to a large early pay out penalty.

No matter what the reason you want a home equity line of credit, they'll only get more and more difficult to obtain moving forward. Please call me to find out more if you're interested in submitting an application before changes occur. Those people with current lines of credit over 65% of the values of their homes, will likely be grandfathered by their lenders to keep those lines of credit, so long as the don't change lenders.




Contact

I'm looking forward to connecting. Due to being in and out of meetings both for council and business, email is typically the best way to get in touch with me. If you prefer to call, that's fine as well, it just may take me slightly longer to get back to you. Texting is also welcomed.
  • TMG - The Mortgage Group Canada Inc.
    3610 Estevan Drive, Port Alberni, BC, V9Y 5R2
  • Cell: 250.731.8735
  • Fax: 1.877.474.5346
  • Email: sharie@mortgagegrp.com
  • RE/MAX Mid-Island Realty
    4213 Princess Road, Port Alberni, BC, V9Y 5R2
  • Phone: 250.723.5666

Please feel free to use the form below to contact me.

  • Human verification question:
    What is the first name of the broker who owns this site?
Email has been sent!
Email could not be delivered. Please try again later!