27 Apr Coast Capital Savings’ Lines of Credit
Review Date: January 10, 2014
Coast Capital Savings is Canada’s second largest credit union. Their home equity and personal lines of credit will fit well with CashMap’s line of credit strategy. The rates are competitive, the staff was friendly and there are virtually no costs. What are the drawbacks? None!
Home Equity Line of Credit Review Details
Closing Costs: If you have a Coast Capital Savings mortgage, you’ll just pay the registration fee. Otherwise, you’ll pay the registration fee and appraisal costs.
Processing Time: On average one week!
Annual Costs: None
Rates: Variable rate of prime plus .5 percent. The current rate is 3.5 percent.
Maximum Rate: 24 percent
Current Lowest Rates: Approved Lines up to $100K 4.5%; Over $100K rates are lower
Maximum Amount: No limits based on DTI and LTV ratios
Minimum Loan to Value Ratio: No greater than 65% of home’s value
Debt to Income Ratio: 45 percent
Term: Interest only using the daily interest charge.
Refinancing: Not applicable. You retain the line for as long as you own your home.
Repayment Terms: Interest only,
Prepayment Period and Penalty: Three years and $450 plus closing costs spent by the bank.
Automatic Loan Payment: Yes; however, there is no impact on the rate.
Overdraft Protection: Yes and no fees are incurred when used. This will enable you to maintain a zero balance in your checking account. You can write checks from your checking account and the dollars will automatically be drawn from your line of credit.
Limits on the Number of Withdrawals: None
Cost of Line of Credit Checks: Yes, the cost is the same as ordering regular checks;
Choice of Billing Cycle: Flexible. The billing date is usually 30 days after your initial funding. You have an additional 30 days to make payment. You have the flexibility of selecting an ongoing payment due date.
Carrying a Credit Balance: No. For overpayments, the balance is deposited in your checking account.
Secured Personal Line of Credit
Security: Must be 100% and secured using savings or GIC
Interest Rate: Rate is variable using Prime plus .5% – Currently 3.5%
Unsecured Personal Line of Credit
Interest Rate: Based on credit score rates range between 5.5 and 10 percent.
Qualifying Amount: DTI of 45 percent
Note: rates and underwriting guidelines will change. This guide is a guide to assist you in asking the questions necessary to choose a line of credit that will best fit your needs. CashMap Consulting LLC makes no guarantees and as no affiliation with this or any other financial institution.
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