用line of credit付mortgage合算吗？[问题]

[星期三的决定]

想问斑竹个问题：
我的mortgage是5年fix的4.75%，我在银行有些line of credit，是prime利率。
我算了下，按25年计算我的mortgage到最后实际付的利息大概是84%.
如果多付些就会大大降低总的费用，而且越早付越好，因为一开始利息最多。

我不知道line of credit的利息是怎么算得，是不是不用像mortgage那样有
个25年或其他很长的期限，而是像信用卡一样按月结算？如果是按后者的话，
那我先用line of credit取钱付一些prepayment到mortgage里去，过几个月
等我有钱了再还清line of credit，这样即使line of credit的月结算利息
高一些，在mortgage上省得钱会更多。

请问斑竹，这个办法可行吗？谢谢。

 

[挺傻]

Yes, you are right based on current prime rate as long as you have enough cash flow to cover regular mortgage payment and line of credit payment.Same as credit card, line of credit has minimum payment and you could payback your line of credit whenever you want.

One thing want to mention, line of credit is always monthly compounded.

 

[qwer]

根据你的情况
普通LOC,大概你能拿到的利率4.25% to 4.5%,eq年利率4.44% to 4.59%.
你的抵押贷款4.75%,按半年复利算是4.81%,每一万快钱,一年可以省20多到40多.
就算你借3万,一年也就省100多.
如果用房子做抵押,利率也许4.0% to 4.25%,但是手续费就几百,
如果你借10万,差不多一年省400to700多.
通常银行只让你还原始本今的15%到20%.也就3,4万吧.
如果你还想借钱做别的生意,也许不还房贷的好.

 

[dkwan]

Interest rate calculation on LOC is just like credit card, interest calculated daily, compound monthly.

Your idea is very good, because first few years of mortgage basically are paying interest only.

Something need to reminds you:
1) Once you established your 'closed' mortgage, you cannot pay lumpsum anytime you want. Then, your LOC plan is not likely to execute.

2) Before you established your mortgage, and if you know you will have money some months down the road, you should ask for a 'open' mortgage. Then you LOC plan doesnt needed.

3) Let say you really pay some mortgage by your LOC, your monthly mortgage will not be decrease a lot but your LOC payment ( should be 3% ) will increase dramatically. Before you have your lumpsum to pay your LOC. Interest would accumlated quite a bit.

P.S. If your case is, you can have lumpsum money from time to time. You should have a mortgage that is flexible on payment but fix in interest. E.g. I can pay $500 in January, Feb, March, and $1500 in April, May and back to $500 in June, July.....etc but the interest is still the same.

 

[BobtheBuilder]

Another thought if you intend to invest at the same time

We all know that in Canada, you cannot claim mortgage interest against your income tax like in the States. But if you intend to borrow money to invest (buy MF or stock), then the interest expenses can be deducted from the payable tax.

So if you intend to invest as well (at the current low rate environment, no need to pay back your mortgage so soon), you could borrow against your LOC to invest in Mutual Funds or stocks, say you borrow 10,000, then you pay the prime rate annually, this annual cost around $450 can be deducted from your income tax. If you are in a marginal tax bracket of 33%, you actually save $150.

You can prepay your mortgage with the money you'd otherwise have spent on these investment. One thing to point out though, the investment you pick has to be outside your RRSP to qualify the tax credit. If you have already bought some investment now, you might want to consider selling some to payback your mortgage. And then borrow LOC to invest.

Just my two cents, consult a financial advisor is a better idea.

 

[wuchang]

Re: Another thought if you intend to invest at the same time

最初由 BobtheBuilder 发布

So if you intend to invest as well (at the current low rate environment, no need to pay back your mortgage so soon), you could borrow against your LOC to invest in Mutual Funds or stocks, say you borrow 10,000, then you pay the prime rate annually, this annual cost around $450 can be deducted from your income tax. If you are in a marginal tax bracket of 33%, you actually save $150.

Sorry. I don't fully understand your calculation. How did you get "you actually save $150"? Thanks in advance

 

[zipped]

Re: Another thought if you intend to invest at the same time

最初由 BobtheBuilder 发布
We all know that in Canada, you cannot claim mortgage interest against your income tax like in the States. But if you intend to borrow money to invest (buy MF or stock), then the interest expenses can be deducted from the payable tax.

So if you intend to invest as well (at the current low rate environment, no need to pay back your mortgage so soon), you could borrow against your LOC to invest in Mutual Funds or stocks, say you borrow 10,000, then you pay the prime rate annually, this annual cost around $450 can be deducted from your income tax. If you are in a marginal tax bracket of 33%, you actually save $150.

You can prepay your mortgage with the money you'd otherwise have spent on these investment. One thing to point out though, the investment you pick has to be outside your RRSP to qualify the tax credit. If you have already bought some investment now, you might want to consider selling some to payback your mortgage. And then borrow LOC to invest.

Just my two cents, consult a financial advisor is a better idea.

Can the investment be on private company?

 

[挺傻]

Re: Re: Another thought if you intend to invest at the same time

最初由 zipped 发布


Can the investment be on private company?

COMPANY报税是和PERSONAL分开的,因此如果投资COMPANY就要把利息按照FINANCING COST报公司收入里面,不是PERSONAL TAX里面报了.

 

[zipped]

Re: Re: Re: Another thought if you intend to invest at the same time

最初由 挺傻 发布


COMPANY报税是和PERSONAL分开的,因此如果投资COMPANY就要把利息按照FINANCING COST报公司收入里面,不是PERSONAL TAX里面报了.

I mean can I claim the interest expenses in investing money on private own companies.

 

[BobtheBuilder]

Re: Re: Another thought if you intend to invest at the same time

最初由 wuchang 发布

最初由 BobtheBuilder 发布

So if you intend to invest as well (at the current low rate environment, no need to pay back your mortgage so soon), you could borrow against your LOC to invest in Mutual Funds or stocks, say you borrow 10,000, then you pay the prime rate annually, this annual cost around $450 can be deducted from your income tax. If you are in a marginal tax bracket of 33%, you actually save $150.

Sorry. I don't fully understand your calculation. How did you get "you actually save $150"? Thanks in advance

You can deduct $450 from your total taxable income, and if your marginal tax rate is 33%, you actually pay $450x33%=$150 less tax.