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Old 2008-09-24, 11:21 AM
MortgageGuy MortgageGuy is offline
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Join Date: Jul 2008
Location: Ottawa, Ontario
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Default home equity Line of Credit

I ONLY recommend getting a line of credit secured against your residence if you really think you will need it. It is just another way for the bank to make it easy to pull out your hard earned equity and spend it. Also if you are getting a line of credit, DON'T use one of the "all in one" mortgages such as the Scotia STEP mortgage(not picking on Scotia, all the major banks have these). They can never be transfered(without cost) to another lender upon the renewal of the fixed portion of your mortgage 5 yrs from now. If you must have a line of credit, get it separate from your first(as a second mortgage) and then it leaves you options when your 1st comes up for renewal. Remember that lines of credit have a floating rate therefore you are exposed to fluctuating rates in the future. I will also mention that there are MANY people out there who I have financed that are likely sorry they ever had a line, having used it to the max living beyond there means.
Dan
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
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dan@mortgagemoney.ca
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