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The 4 Debt Contracts

The 4 Debt Contracts. The 4 Debt Contracts. Has anyone ever taken the time to inform you about the 4 Types of Debt Contracts?

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The 4 Debt Contracts

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  1. The 4 Debt Contracts

  2. The 4 Debt Contracts Has anyone ever taken the time to inform you about the 4 Types of Debt Contracts? *NB Declaration: Please remember, I am not a mortgage broker, nor do I hold myself out to be a mortgage broker. These are Simply 4 Types of Debt Contracts typically available to consumers through licensed professionals.

  3. The 4 Debt Contracts Mortgage (Traditional) Secured Line of Credit / HELOC (Regular) HELOC (Special) Self-Directed Mortgage (Rare)

  4. Contract #1 Traditional 5% Purchase or 20% Refinance Banks, Brokerages, Private Lenders P I Blend Monthly Bi-weekly Weekly Rate V/F Term 6mo-10yr Freq 1Wk-1Mo Amort25-40yr Pen 3Mo +/or IRD Set Up Fees: Legal, Appraisal Admin. P I 6mo Semi Annual (Compound):

  5. Contract #2 Regular HELOC 20-35% Purchase or Refinance SLOC / HELOC Banks, Brokerages, Private Lenders On the “highest” balance 14th 15th 16th Rate V/F Term Open Freq Monthly Amort Open Penalty: None, with possible Admin Fee Set up Fees P I Only • 10K 10K Or the average balance over the statement period Up to 60 days (Compound)

  6. Contract #3 Special HELOC 20-35% Purchase or Refinance SLOC / HELOC P I Only 24 I 24 Rate V/F Term Open Freq Monthly AmortOpen Penalty: None Or admin fee Set up fees: maybe 10K 10K Some Credit Unions TD (46% market share) ↓ Manu (Cash Management) Combo Cheq Account No Minimum Payment up to 15 Sub Accounts NO set-up or legal fees Daily Balance Simple Interest 2 Days

  7. Contract #4 SD RRSP $300 K $400K Rare 35% Purchase or Refinance SD MTG Trusts with Intermediaries BANK $200K @ $1400/mo $100K $200K $200K $1400/mo Bank gets to lend out your monthly deposit approx 10 TIMES!!

  8. Contract #4 • A Trustee is required • Trustee may limit how much of RRSP can be used for this type of investment • Trustee, Legal and Admin Fees apply • The borrower must financially qualify independently as if a third party • Default still results in Foreclosure by CMHC

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