How can you manage all your credit needs with the Versatile Line of Credit?
Possible uses – Long-time Owner
To better understand the advantages of this line of credit, let’s look at Jason Fisher’s financial summary.
Value of the home: $250,000
Mortgage: $60,000
| Credit situation | Line of credit available | Total financing used | Average interest rate |
| Without Versatile Line of Credit | 10 000 $ application required for additional credit |
99 000 $ | 8,53 % |
| With Versatile Line of Credit | 101 000 $ financing managed by John |
99 000 $ | 6,32 % |
Annual savings with the Versatile Line of Credit: Over $2,000.
Without the Versatile Line of Credit
Without the Versatile Line of Credit, Jason must apply each time he needs additional financing.
| Credit products | Amount | Rate | Term |
| Mortgage | 60 000 $ | Fixed à 5,90 % | 5 years |
| Auto loan (without insurance) | 25 000 $ | Fixed à 12,50 % | 5 years |
| Personal Line of Credit | 10 000 $ | Variable à 10,00 % | |
| Credit card | 4 000 $ | Fixed à 19,40 % | |
| Total financing : | 99 000 $ | Average rate of 8,53 % |
With the Versatile Line of Credit
With the Caisse Versatile Line of Credit, Jason can redistribute his credit products and get much better rates since he took out security of mortgage with his financing.
Versatile Line of Credit (financing available = 80% of the value of the home): $200,000
| New credit product distribution | Amount | Rate | Term |
| Mortage | Tranche 1: 30 000 $ |
Variable réduit à 4,50 % | 5 ans |
| Tranche 2: 30 000 $ |
Fixe à 5,90 % | 5 ans | |
| Versatile Line of Credit (variable portion of the Versatile Line of Credit) | 14 000 $ * | Variable à 5,00 % | |
| Secured auto loan | 25 000 $ | Fixe à 9,75 % | 5 ans |
|
Total financing used: Financing still available: |
99 000 $ 101 000 $ |
Taux moyen de 6,32 % |
Jason doesn’t have to apply again for additional financing; he can use the funds available as he wishes. In addition to a competitive rate, the Versatile Line of Credit lets him manage his projects or purchases independently from one another and gives him a realistic overview of his credit situation.
* The line of credit and credit card were combined under the Versatile Line of Credit to take advantage of a better rate.
Example of use – New buyer
Choosing the Versatile Line of Credit to finance the purchase of a property gives borrowers the freedom to manage their current and future loans. Here’s Paul Dupuis’s financial summary.
Value of the home: $250,000
Mortgage: $191,000
| Credit situation | Total financing used | Total monthly cost |
| Without Versatile Line of Credit | 209 000 $ | 1 288 $ |
| With Versatile Line of Credit | 209 000 $ | 676 $ |
Situation de crédit sans marge Atout
| Produits de crédit détenus | Montant | Taux | Terme | Coût mensuel |
| Prêt hypothécaire | 191 000 $ | Fixe à 5,00 % | 5 ans | 668 $ |
| Marge de crédit personnelle | 5 000 $ | Fixe à 10,00 % | Sur 2 ans | 230 $ |
| Carte de crédit | 4 000 $ | Fixe à 17,00 % | Sur 1 an | 390 $ |
| Financement total: | 209 000 $ | Coût total mensuel: | 1 288 $ |
Without the Versatile Line of Credit
With the Caisse Versatile Line of Credit, Paul can redistribute his credit products and, since he’s applying security of mortgage to his financing, he gets a much better rate. This new distribution takes into consideration his tolerance to risk and ability to repay his debts.
Versatile Line of Credit (financing available = 80% of the value of the home): $200,000
| New credit product distribution | Amount | Rate | Term | Monthly payment |
| Mortage | Portion 1 : 50 000 $ |
Reduced variable at 4,50 % | 5 years | 175 $ |
| Portion 2 : 34 000 $ |
« 5 in 1 » at 5,30 % | 5 years | 120 $ | |
| Portion 3 : 107 000 $ |
Fixed à 6,75 % | 5 years | 381 $ | |
| Line of credit (variable portion of the Versatile Line of Credit) | 9 000 $ | Variable at 5,00 % | 0 $ | |
| Total financing : | 209 000 $ | Total monthly cost : | 676 $ |
The total monthly payment is significantly lower because the interest rates are better and the member can decide to have longer amortization periods.
Did you know?
When you take out Line of Credit Insurance or Loan Insurance, the insurer makes your payments in the event of disability and repays your Versatile Line of Credit balance in the event of death.