Attn Cdns: Vacation Mortgage?

[MikeyNS]

Hi all..

Has anyone paid for their DVC through a Vacation Mortgage, such as the one the Royal Bank has? I'm just trying to think of some payment options so that I don't have to pay the high DVC Interest Rate. (Especially with interest rates being so low here in Canada!)

I guess a home equity loan would be ok, but I was wondering if DVC qualifies as a "vacation home".. (ie: has anyone been able to secure a vacation mortgage)?
Thanks!

 

[Canadian Tom]

Hello: Have you thought about a line of credit at prime(3.75%) from your bank?

 

[3DisneyNUTS]

We went for the Capital one 4.99% interest card and the 0% FOR LIFE transfer option DISCOVER card is having right now after a nightmare trying to get a 5.99% fixed equity 5 year loan. We have awesome credit and things were a nightmare, while this seems to only happen to us, we decided to say forget it to the loan put the vacation on our american express card first for the points and we are transferring it over to the capital one card the one with the 4.99% option and the Discover 0%. So we don't get to write off the interest but with the points and the lower interest rate it it actually works out even. The discover card option was as long as you make one purchase a month the rate for the transfer stays at 0% until it is paid off. The one purchase in my situation is the credit insurance for approximately $2 a month.

This may sound confusing but it was much better then dealing with the incompetant mortgage people at the credit union we went to. Omg it saved alot of time as well. SO if you can get those rates you may want to check it out. I wish my discover card had a limit to pay the entire balance but it didn't otherwise we would have transfered the entire amount to that and had the whole Vacaction club at 0 % interest

 

[pumpkinboy]

FYI, Disney3Nuts, Mortgage interest is not tax-deductible in Canada.

MikeyNS, I follow RBC as a Bank Analyst, and always take a keen interest in a bank's loan underwriting standards. Given RBC's culture, I would sincerely doubt that any timeshare would fall into their definition of "vacation home", especially one in the USA. I expect an unsecured line of credit, like Cdn Tom talks about, a home equity line or just going thru Disney will be your best best (the first two will be cheaper tho, given lower Cdn interest rates and likely increase in US rates). Another advantage to financing thru your bank is that you could buy resale and save big bux.

Just putting the finance wonk's perspective on it Good luck.

 

[3DisneyNUTS]

Originally posted by pumpkinboy
FYI, Disney3Nuts, Mortgage interest is not tax-deductible in Canada.

MikeyNS, I follow RBC as a Bank Analyst, and always take a keen interest in a bank's loan underwriting standards. Given RBC's culture, I would sincerely doubt that any timeshare would fall into their definition of "vacation home", especially one in the USA. I expect an unsecured line of credit, like Cdn Tom talks about, a home equity line or just going thru Disney will be your best best (the first two will be cheaper tho, given lower Cdn interest rates and likely increase in US rates). Another advantage to financing thru your bank is that you could buy resale and save big bux.

Just putting the finance wonk's perspective on it Good luck.

OMGosh I am so sorry I just realized what that meant after you explained it to me Ugh. I guess I was of no help sorry

 

[jaysue]

I would use an unsecured or secured line of credit and then just pay it off in a prompt fashion

We have used our credit card and then when the bill comes used our PLC to pay off the credit card - this way we get the awards from the card loyalty program without paying large interest charges

Also there tends to be offers from MBNA for example at 1.9 to 4.9% interest if you charge on them but sometimes these are for limited time periods only

thanks
jaysue

 

[pumpkinboy]

You tell 'em JaySue! Good to have a fellow Finance Wonk weigh in on the subject, and a Canadian one at that!