No we do not have a HELOC. Costs about 1500$ or so with paperwork and appraisals.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
I learned from that and added one at the beginning on this house. Adding to HELOC limit as you pay off the house is free if it is already set up.
D
Deleted member 50930
Guest
!! smith maneuver !!
Never fully understood the mechanics behind this...and not sure I’ve got the nuts for taking that much risk.
If you work through a broker for your mortgage it can be a bit harder to set up a HELOC after purchase than if you use a chartered bank . The broker may well have used a chartered bank for the end product but you may be a new customer with that bank.
The $1500 to set one up is a grab, if the house has changed hands in the last 5 yrs , it was valued then for the mortgage so they know what its worth. They can value the home from google street pictures if they want to.
If you have a good bank relationship you can negoiate that $1500 down to $500 or less. They WANT to loan you money.
I had to close out a HELOC on the last house and open a new one as we changed banks in the process. This was because I used a mortgage broker for the bridge financing, I was with Manulife and she rep'd mostly for Scotia bank. Turns out I could have done everything myself with two phone calls to Manulife but I was lazy.
The $1500 to set one up is a grab, if the house has changed hands in the last 5 yrs , it was valued then for the mortgage so they know what its worth. They can value the home from google street pictures if they want to.
If you have a good bank relationship you can negoiate that $1500 down to $500 or less. They WANT to loan you money.
I had to close out a HELOC on the last house and open a new one as we changed banks in the process. This was because I used a mortgage broker for the bridge financing, I was with Manulife and she rep'd mostly for Scotia bank. Turns out I could have done everything myself with two phone calls to Manulife but I was lazy.
My problem was I wanted HELOC for more than the original mortgage amount. I was starting a company and didn't want to get sunk by lack of available capital. House value had doubled so the money was there but needed the paperwork to access it.
Interesting tip I was given by one of my bankers , remember 2008 when many Cdn banks pulled back on HELOC and reduced amounts of available cash to limit the banks exposure, if you have a HELOC with no balance , make a $30.00 payment, it sits with a credit balance and they will not touch it. I have no idea why but it will not show on an unused account list, its being used, you never need to monitor it as no minimum payment is required , it has a credit balance.
That's what I do with my unsecured LOC. Otherwise it gets deactivated every 18 months and requires paperwork to be filed at my home branch hours away to wake up. It's had a balance of -1.00 for years.
That's the tricky bit, setting them up later is certainly harder.
Told a young friend , who has been in uni the last 4 yrs, get a student Visa card and start paying little bits and build credit . Scotiabank will give one to just about any uni student. She didn't follow through, finished classes and became a graduated student a week ago. Applied yesterday and was turned down, not a student, no job, has 6k in her bank account. Good kid, in my mind zero credit risk, but slept through the window of oppotunity.
Get credit when you dont need it , because when you do....
My theme song, most businesses fail from being undercapitalized .
So Covid and the housing market... One of the things we have talked about was living summer months on the boat, WFH has made that pretty reasonable.
Now there is about to be a luxury tax on aircraft and boatsover $250k in value, I'll admit bias , if you can afford a jet , maybe you should pay some tax. However there are a LOT of RV's and motorhomes rolling around in the 5-800k , 1million dollar range for top end diesel bus platform coaches. They are not considered a luxury, WTF??
So looking at a new to us boat, the ask is 385k. I can see going forward there will be a lot of boats sold for $249K, the suite of available electronics can be sold with the boat for $100K, the sail package is available separetly for $50k, and there is an oil painting in the salon on a seperate invoice for $25K. It will be a lot more paperwork but this tax will be an easy avoidance.
Now there is about to be a luxury tax on aircraft and boatsover $250k in value, I'll admit bias , if you can afford a jet , maybe you should pay some tax. However there are a LOT of RV's and motorhomes rolling around in the 5-800k , 1million dollar range for top end diesel bus platform coaches. They are not considered a luxury, WTF??
So looking at a new to us boat, the ask is 385k. I can see going forward there will be a lot of boats sold for $249K, the suite of available electronics can be sold with the boat for $100K, the sail package is available separetly for $50k, and there is an oil painting in the salon on a seperate invoice for $25K. It will be a lot more paperwork but this tax will be an easy avoidance.
blackcamaro
Well-known member
I think I saw you mention this before. Are you talking about when you make mortgage payments the HELOC credit limit slightly goes up as you pay down the mortgage or do you actually call and say houses are up xx% this past year can you add 5% available credit to my HELOC?
I am currently just moving from hand A to hand B as it is paid off. Initial mortgage was setup as LOC+Mortgage is xxxK (although because they are pricks, they took a 100% lien on house so I can't get a 2nd mortgage elsewhere even though there is a lot of equity unavailable in their approved package). As I pay off principal, I increase LOC yearly. House has gone up a lot so I could probably get that xxx bumped up and added to LOC but I expect that would incur the fees and it's not worth it for me to generate room I don't need. I increase it mainly because there is no downside and a small upside (lower percent utilization if I ever use it which makes for a happier credit score).
Here's a house in Calgary under construction apparently owned by a 33 year old. It has a nice garage. Terrible property though. Article says 11,000 sq ft, I have my doubts about that. It looks a hell of a lot bigger. Based on covid pricing in Toronto which applies even to the top of the market, that guy could probably make more on the sale of this house than most people earn in a lifetime.
www.macleans.ca
The mystery mansion near Calgary that has everyone talking - Macleans.ca
The 11,000-sq.-foot residence's front door is protected by statues of life-sized golden horses, and a golden chariot helmed by a giant winged man, also in gold
www.macleans.ca
blackcamaro
Well-known member
Thank you. Mine is set up similar to yours. I will probably give them a call next year and see if I can access more of the equity as long as they don’t want to charge for it.
BTW couldn’t pay me to live in that Calgary house. I would take the 32 hectares with a nice Bungalow and huge shop though.
I agree about that house. JTF builds similar houses around newmarket/aurora/king but their standard design creates rolling hills and a wandering driveway to minimize the visual impact and provide privacy. I've never seen one come up for resale.
D
Deleted member 50930
Guest
Wtf is he going to do in that house
Throw a million brothel parties?
AirBnB?
Traffic humans?
Throw a million brothel parties?
AirBnB?
Traffic humans?
Principal residence. Tax free. No limit. Amazing system we have.
Based on the shipping containers, it looks like main floor of garage is ~5000 sq ft. Not sure if it is high ceilings or another floor above. I am very entertained that the brodozer hummer is too tall to fit in the giant garage so they have to park outside.The right half of it looks like it's all garage.
The architecture is horrendous. Windows on garage and house don't line up. Two random copper dormers. Just expensive vomit.
PS:
I always thought Obama could spell. Guess not.
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*shrug*
Not a house guy.
5500 sq ft garage gets a thumbs up from this car and bike guy!
LOL, just noticed that.
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