We read this article yesterday on MSN Finance (written by Brenda Bouw, author of Home Girl: The Single Woman’s Guide to Buying Real Estate in Canada ) and found it interesting (and not exactly shocking) to learn that an increasing number of Canadians are refinancing their home. In a recent survey by the Canadian Association of Accredited Mortgage Professionals, 56 percent of respondents who took out larger mortgages said they used the money for debt consolidation and repayment while 30 percent went towards home repair and renovations.
For some Canadians this makes a lot of sense and we like how this article points out the cautions for those considering this option. If you find it challenging to keep your high(er) interest rate credit sources (credit cards, Best Buy or Sears cards…) in check, freeing up home equity to pay these down, only to find yourself undisciplined in racking them back up – has its consequences. In the end a homeowner will themselves in a more challenging position as all household expenditures rise. Use home equity wisely and you may find a lot more breathing room in your family budget at the end of each month.
AltaPacific Mortgages is interested in helping Canadians make the right choices. If you’re an investor we’d like to share with you our vision in helping Canadians with first and second mortgages. If you’re a homeowner we want to discuss with you the best choices for you. To give you an example of our vision, we ask ourselves several questions while performing due diligence on a mortgage request. Does the mortgagor really need these funds? Does this mortgage truly help this person or family? Are we putting them in a better financial position today, and in the future? AltaPacific Mortgages is not simply placing funds in the deals that are the most attractive “on paper” … they have to be equally as socially responsible to the mortgagor.
We’d be happy to discuss the topics of investing in Canadian real estate (or maybe better stated as investing in Canadian mortgages) or any topic relating to home ownership and home equity. Our investors enjoy healthy returns by pooling their private placement investments, or RSP investments, into AltaPacific’s special shares. Feel free to contact us if you’re interested in a chat, or learning more.
