It sounds like FRO operates similar to a mortgage but easy to spin up from within a HELOC. Borrow money from HELOC to do renovations, convert to FRO to save on interest. Rinse and repeat if you want. Mortgage has the ugly upside to being one and done so you may end up with extra capital incurring interest that you don't need on day one.
Toronto condo bloodbath has spread to the western GTA , condos in Oakville / Burlington off by twenty percent . Not the lovely waterfront stuff but everything else apparently.
I know a guy in a 1 bedroom condo in downtown Burlington (Maria and John) and he wanted to stay in the building and buy a 2 bedroom unit. It took him over 2 years to sell his place before he could buy the larger unit. Personally, I cannot stand them and hope they all go to hell in a hand basket - no need for them in downtown Burlington.
I'm seeing a ton of houses sell very close to three years after purchase. I'm thinking they took three year fixed and the renewals are ugly. Some are selling for roughly purchase price (so a big loss once LTT and RE fees are considered) and some are selling for six figures less.
This is the new reality, if you need to sell and you haven’t been there five plus years , you may be taking a kicking . Even if you can get out for what you paid , Oakville land transfer tax is forty K average , lawyers , changing out service billing and moving expenses and you’ll drop an easy hundred K on paperwork.
This is the new reality, if you need to sell and you haven’t been there five plus years , you may be taking a kicking . Even if you can get out for what you paid , Oakville land transfer tax is forty K average , lawyers , changing out service billing and moving expenses and you’ll drop an easy hundred K on paperwork.
That’s not a really common term, each bank has a trade name for their fixed rate option.
In simple terms, it is a plan that switches a portion of your line of credit from revolving to instalment credit.
Revolving credit is the type that has a limit (credit cards, helix, loc) that alliws you to reborrow once you back some or all of the credit. It’s the riskiest type of credit for a bank.
Instalment credit is a loan you pay down the principal over a set time (regular loan, mortgage,car loan). Every time you make a payment, the lenders risk is reduced.)
A FRO is an option that allows you to convert a portion of your revolving credit to instalment type to pay down over time. Because the instalment credit is less risky, the bank charges less interest.
The real upside is your overall credit limit on your credit card, loc of heloc stays the same - but you pay lower interest. As you pay down the FRO portion, the amount you paid off becomes immediately on the revolving portion.
I'm seeing a ton of houses sell very close to three years after purchase. I'm thinking they took three year fixed and the renewals are ugly. Some are selling for roughly purchase price (so a big loss once LTT and RE fees are considered) and some are selling for six figures less.
The problem with downsizing is that it has to be a huge drop in market price to offset the costs. The exception being going rental where the LTT doesn't factor in. That or move a couple of hours out of the GTA.
Hopefully when you downsize your LTT would be proportional to the house cost so possible savings . It’s an assumption on my part but I suspect many of these people overbought and may have been bleeding for a while . Moving out of the GTA creates a secondary issue if you work in the GTA , now you burn record price gas , eat a car every few years and get to enjoy hours long commutes . F that .
Hopefully when you downsize your LTT would be proportional to the house cost so possible savings . It’s an assumption on my part but I suspect many of these people overbought and may have been bleeding for a while . Moving out of the GTA creates a secondary issue if you work in the GTA , now you burn record price gas , eat a car every few years and get to enjoy hours long commutes . F that .
I did 18 years of 100 miles per day total commuting, working nights. Gas then was half the price or so and I used about 70/L per week in two Focus (Foci)? About an hour or so each way, living rural so traffic was never much of an issue, fog, freezing rain, snow and blowing snow were always a concern along with suicidal animals of all kinds running out of the tree lines. Anyone now driving a big truck gas/ diesel, doing a similar drive is hurting bad. Would NOT recommend.
Hopefully when you downsize your LTT would be proportional to the house cost so possible savings . It’s an assumption on my part but I suspect many of these people overbought and may have been bleeding for a while . Moving out of the GTA creates a secondary issue if you work in the GTA , now you burn record price gas , eat a car every few years and get to enjoy hours long commutes . F that .
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