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The Atkinsons have lived in their Halifax, Nova Scotia home for eight years. Robert is 36 and Maria is 35. They have a three-year-old daughter, Sara, and a one-year old son, Julian. Robert is employed by the Department of Fisheries, and Maria was in computing before the children were born, but has since been looking after the children.
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Do major home renovations, adding a home office for Maria to start her own computer consulting business
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Tidy up some higher interest rate credit card debt that has crept up
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Get the second car Maria needs for her business
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The Big Picture (in round numbers) |
| Appraised value of home |
$165,000 |
| Balance on mortgage account |
$110,500 |
| Balance on credit card |
$3,500 |
| Balance on department store credit card |
$4,350 |
| How they can make it work |
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90% Revolving STEP Portfolioo
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| Value of Home |
$165,000 |
| 90% of value of home |
$148,500 |
| The Atkinsons’s 90% Revolving STEP global limit is $148,500.* They can combine all their existing borrowings under one plan and take advantage of additional credit now available to do all the things that they had planned - illustrated as follows: |
| Mortgage Account |
$110,500 |
| They have retained their mortgage account borrowings. |
| Line of Credit |
$28,000 |
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By switching their credit card and department store card balances to a ScotiaLine® Personal Line of Credit, the Atkinsons can save on interest costs. The default insurance premium* can be paid from the line of credit over and above the available credit. They are able to use the remainder of available credit on their line of credit for major home renovations.
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| Loan for Car |
$10,000 |
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With the remaining room in their STEP, the Atkinsons will be able to get the car Maria needs for her new consulting business.
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Total |
$148,500 |
Robert and Maria can now extend their cash flow to meet their changing needs and still have some money set aside for incidentals.* The Atkinsons are required to pay a default insurance premium on their 90% Revolving STEP that will allow them to exceed 80% of the value of their home and enable them to take advantage of revolving credit. The premium will be paid from the line of credit, over and above the available credit. The Revolving STEP Term is valid for either 5 or 10 years. At the end of the Revolving STEP Term, the Atkinsons will need to visit the Branch to find out their options.
Your Scotiabank representative understands your borrowing needs and can help you find the solutions that are right for you.
* Subject to credit approval and property meeting our residential standards.
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