Home Credit

Selasa, 17 Desember 2013

By Larry Matthews 
Home credit is in my opinion the single biggest driving force behind the Canadian economy. Most home owners depend on and even count on the increasing value of their home in order to consolidate debt or cash out for tax free profit to subsidize their ever shrinking purchasing power. As the changes to accessing credit continue to tighten up that option is slowly but surely being removed and the consequences will be drastic.
Consumer spending is essential to economic recovery. As more and more consumers are being turned down for debt consolidation and mortgage applications are being declined a perfect storm is developing in relation to the housing market. I see more foreclosures and more downward pressure on housing prices as all these changes come into play. Tight credit means less lending and less lending means less money gets into circulation. The reduced spending effects business and lay offs increase and the economic spiral downward continues. Could I be wrong? I hope so. My advice; plan for the worst and you will not be caught unawares. Interest rates are low so now is a good time to refinance your home and put a little nest egg aside in case you need it if you are laid off. Consolidate that credit card debt if you can. Long term debt is always better than short term with it's higher interest rates.Home credit could be the solution. Now could be the time to refinance your mortgage.
If you are a small business owner and have home equity access it now. Refinance and put money aside to weather the coming storm. In a recession cash is king and I don't think we can put this one behind us yet. Remember "An ounce of prevention is worth a pound of cure" Having cash set aside could be the cure you will need to come out on top.