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@blazingstarblossoms because the undisciplined borrower will end up paying more interest on the LOC, first because of its highest interest and second because of the relaxed framework that does not require repayment of principal. If you are a disciplined borrower, LOC can be wonderful tools for...

@yaharise This!

@areli Fixed, variable, and hybrid interest rates are just mathematical game. CTRL+F "Get a fixed rate if:" for the relevant points. Hybrid rates is a mix, some part of one, some part of the other, less than 5% of the market...

@xososaxo Check out their website or whatever sales network they use. MD financial management used to offer extremely low rates for the best borrowers (lowest risk). Investment Group is another name that comes to mind. Manulife, of course. Many more.

@mikaedi thanks for sharing. OFF-TOPIC: I can barely understand what the attraction is of these youtubers. I want information condensed, not information expanded. His argument (which I mostly agree with) can be condensed to 400-600 words and read in less than a minute. Listening to the...

@mikaedi I do not have a crystal ball, and in fact, following my investment advice resulted in some missed opportunities. For example, back in 2009, I had a proof-of-concept mining rig working on my laptop. Then I decided to focus on law school and not to waste time and energy on...

@leodrone from a legal point of view, the only differences between a mortgage and a home equity line of credit (HELOC) are the flexibility of withdrawing and paying back and the way interest is compounded. Flexibility has its price. Interest might be higher. Fees as well. Last time I...

@xososaxo The goal is to encourage participation instead of lending, which is considered profiteering and unethical. If a "lender" finances a harvest, it will get more return in good years and less return in bad years. Problem with a home is that except for changes in valuation there is no...

@xososaxo The outcome of a bad situation is indeed the same and the lender will be stuck with the property. What differs is that the lender has no incentive to push the borrower over the cliff and get stuck with a foreclosure / power of sale proceeds of which the borrower bears the cost and the...

@resjudicata Shariah law forbids Riba. The concept of Riba is difficult to describe, and different scholars have different opinions. It can be simplified as the prohibition to make exploitative gains in trade or business. As a result, the Western concept of separating debt from equity is...

@konan The function of the mortgage broker is to connect between demand (you, the borrower) and supply (lenders). They are salespeople, and they add value to the sales process with their expertise and connection. Think of getting a mortgage like buying a phone: you can walk into an Apple...

@alexandria281 you are talking accelerated payment. most mortgages -- fixed and variables -- have sufficient prepayment privileges to cover your situation. It has nothing to do with the type of rate. The type of rate only interacts with your scenario when you want to repay faster than the...

@resjudicata First of all: hindsight is 20:20. You made the decision based on what you knew then and the circumstances then. You did not have a crystal ball to predict Covid and its consequences on interest rates. Fixed vs Variable Rate has no influence on the cost of a home, and even if the...

I (Ontario-licensed lawyer) posted a first draft to a sub-sub-sub thread and realized that these concepts may be actually generally helpful, so I edited and completed them in a way that I hope will help home buyers understand some of the mechanics. It is still highly technical. Happy to answer...