Using Home Equity to pay for your child’s Tuition?

Author: Debbie Viveiros - Mortgage Agent | | Categories: Bridge Financing , Commercial Mortgages , Debt Consolidation , First Time Home Buyer , Mortgage Agent , Mortgage Broker , Mortgage Calculator , Mortgage Loan , Property Investment , Refinancing Mortgage

If your mortgage is coming up for renewal, be sure to consider what the next 5 years of life will bring and ensure your mortgage will suit your family’s needs. If this situation applies to you, consider obtaining a HELOC at the time of your mortgage renewal so you’ll be ready when your child enters post secondary studies

You’re probably already aware how much it costs to go to college or university. A four year degree can easily cost between $40,000 – $60,000 depending on living expenses.

To utilize your home’s equity, your mortgage broker can obtain a home equity line of credit for you (HELOC). You can take draws on this line up to the limit. Once the credit line has been created, you can continue drawing on it without the need to fill out an application each time.

Equity is a tool for improving your financial position or that of your loved ones. Student loans generally have an interest rate of prime +5 for fixed rates. This can be considerably higher than most HELOC’s and can shave years off the repayment of the loans.

Call me to discuss your options.