A collateral loan is also know as a  secured loan. It is a loan that can be obtained from a bank or some other financial instituation.  These  intitutions include:

• Trust Companies
• Pay Day Lenders
• Personal Lenders

In exchange for your collateral or asset, the creditor may sell that which is offered if the loan is unpaid. Why put up collateral?  There are many reasons.  In times of economic crisis, liquid cash may be tight.  As a results, assests with value become a “barter chip” to obtain a loan. As a result, a collateral loan can be offered at a lower interest rate than a typical unsecured loan.  The a guarantee of repayment offered by this financial instrument secures the creditor if the  borrower were to default on the loan.

For collateral on a home, most lenders will accept:

• Stocks
• Bonds
• Other Paper Assets (Treasury Bills, Whole Life Insurance Policy’s etc.)
• Ownership in Property (vacant land, homes, commerical property)

Be forewarned, if you default, you must sell the collateral or come up with payment in kind.  The lender has rights to sell the property, even if only a portion of the full value belongs to them. In such a case, a lender would sell the asset, and give the previous owner the monies not offered on collateral.

Expected collateral can also be used to secure a loan.  An example would be the expected return on a harvested crop, or on an investment. In the 1920’s, buying on Margin lead to the great depression as many ‘bet’ on  a stocks value increase to purchase additional stock.  Many high net worth investors were recently caught short and had to cover their margin.  The recent collapse of Maloff’s Ponzi scheme is a one such example.

On occasion, one can use personal property like high-valued jewelry, watches, antiques, paintings, vehicles or motorcycles as collateral. This is rare, as most collateral loans are based on paper assets, or on real estate. 

If a collateral loan is give based upon an assets value and the value of the asset decreases, a borrower will still be responsible to repay the amount at which the collateral was previously assessed.

For example, a person borrows $250,000 on a home of the same value. If the home decreases in value, say to $175,000, the borrower must still pay back the full amount, as dictated by the terms of the collateral loan. If a borrower has defaulted on the collateral loan, his or her home will be sold. However, the borrower will still owe the lender $75,000. This may require the borrower to sell more possessions or enter bankruptcy.  Does this sound farmiliar?  Many small investors in the US were caught in this trap.  Using the equity value increase in one piece of property to purchase another.  Some decided to use this menthod to “flip” houses.  Taking out a 1 year on interest on payment loan, using their current residence of collateral, then flipping the house.  With the sudden decrease in home value, individuals were caught in the trap and forced to sell their principle residence to cover the short fall.  Smart Investors used trusts or incorporated shell companies which allowed them to file bankruptcy without losing their main collateral asset.  Many others were forced to file person bankruptcy and lost everything.

As a rule, it is wise not to borrow to the full value of a possession offered as collateral to avoid the circumstances described above. Instead, the collateral loan is usually only a portion of the full value of a possession, or of paper trading like stocks and bonds. People with a number of high value items, properties, or stocks and bonds can of course get larger collateral loans. However, with any loan, it is best to borrow only what one needs, since interest rates still mean a higher payback than the actual money borrowed.

It all seemed so easy.  6 months no pay on the washer/dryer…charge it!  New Plasma?  Charge it.  Bigger house, defer and amortize it.  Money has never been so easy to borrow and as a result, it was.

Yet with expolding economy, many people who were extended one month suddenly had that negative made up in terms of net worth the next.    So what was one to do?  Borrow again.  Bigger house, latest SUV, new TV…then…crash.

It seemed to happen so fast.  Many felt without warning.  To even the most casual economist the warning signs were there.  High commodity prices, a long bull market, a war, high gas prices…the list seemed endless.  How then did so many people ignore the little boy crying wolf? 

So now what.  What do you do?  What type of loan should a person take?  What do you do about your credit cards? Should you refinance?  What about that house that’s now worth less than you paid for it?  Walk away?  What will that do to your credit?  How can you recover lost income in your 401k or RRSP?  All very valid questions with very needed answers.  In this blog I will seek to provide a wealth of information to the average investor.  Links to great books on the topic, other blogs, other sites.  I will seek to provide you, the reader, a vast intricate blog to help steer you in the right direction.  Since I have just started, check back often for updates and information.  I can assure you, each stop will be worth it!

About Interest Rates
Lenders provide a great deal of guidance, but you make the final decision about whether you’re getting the best loan you can get. Part of taking that responsibility involves comparing interest rates. Mortgage interest rates change daily based on a number of national and international economic factors.

 You can find longer-range forecasts in business newspapers and on Web sites.

GreenTree Trust will offer  calculators to see how easily you can check the effect of different rates. You can see what monthly payments may look like on different loan sizes at different rates. However, the total cost of a mortgage involves more than just the basic interest rate. Origination fees, discount points, other miscellaneous costs, and other terms and conditions may affect the ultimate cost of your mortgage.

When you are comparing different mortgages, do your best to be sure that you’re taking into account all the factors that can influence your final costs. The lowest mortgage rate may not necessarily be the best choice. Ask lenders these questions:

• What are costs for origination fees?
• What are the costs for discount and origination points?
• What fees does your rate quote include?
• What is the annual percentage rate (APR) of the loan?

The APR is computed based on all the major costs of your loan, not just the loan amount. It usually includes points, origination fees, and other costs associated with the processing of your loan. Be sure to ask lenders which fees are included in their APRs, and try to compare APRs that include the same fees. This will help you determine the most accurate rate you would actually pay.

Simple vs. compound interest

Virtually all mortgage loan repayment schedules are computed based on a compound interest formula. In the beginning of your repayment period, you are paying little on the principal, so if your annual interest rate, say 6 percent, is added to your balance every month, your principal balance doesn’t go down very much.

So if your balance is $100,000 and interest is compounded monthly, it’s like adding $6000 to 100,000, then adding 6 percent of $106,000 ($6,360) to the 106,000 (112,366) , then adding 6 percent of $112,366 to the 112,366, and so on every month. This example is oversimplified (because you usually do pay a little on the principal at the beginning), but it gives you an idea why it takes so long to pay off a mortgage loan and why you end up paying a lot of interest over a 30- or 15-year period.

The moral of the story is it’s not just the interest rate you pay that matters but how often it is compounded. (Sometimes these two factors together are called the “effective interest rate.”) You should get this information from the lender. If your interest is compounded frequently, such as weekly, you may want to shop around and see how often interest on loans from other lenders is compounded.

Discount points

By paying a lump sum of money to the lender at the time you close on loan, you can lower the interest rate. That sum is measured in “points.” One “point” is equal to one percent of the principal amount of the mortgage. (One point on a $100,000 loan would be $1,000.) You should know how points and other terms and conditions affect the total cost.

On most types of loans, lenders offer mortgages with several combinations of points and interest rates. Generally, the lower the interest rate, the more points you will pay at settlement. Interest rates affect your monthly mortgage payment, while the points affect the amount of cash you must have at the closing.

For example, if a loan with the current market interest rate has two points, a loan with an interest rate that’s one-half percent higher than the market rate may have no points. Your choice among the various interest rate/points options will depend on how much cash you have available for the closing and settlement.

When is your rate set?

As you discuss your options among different mortgages, be sure you ask how and when the final interest rate you pay is determined — or when your rate is “locked.”

Most lenders will quote a rate and fees at the time you apply for a loan, and then guarantee—or lock—the quote for a specific time. While this lock protects you from paying more for your mortgage if interest rates rise before you close on the loan, it also means you will pay the quoted rate even if interest rates fall.

Lock periods usually run from 10 to 60 days. Longer periods are sometimes available for an additional fee. You generally will want your lock period to be long enough to get you through closing and settlement.

Some lenders, however, will give you the option of letting the interest rate for your mortgage “float,” so the rate can change between the time you apply and the time you close (although the rate is usually set after some specific period before the actual closing).

Allowing the rate to float enables you to benefit from reduced interest rates if interest rates fall between the time of your application and closing. But before you choose a float, make certain that you have the resources to cover a higher monthly payment if interest rates should go up. Otherwise, you could be denied your mortgage.

“No-cost” options

A “no-cost” mortgage is one in which you are allowed to pay some or all of the discount points and other closing costs over time instead of paying them in cash at closing. The lender may refer to this as financing the finance charges. As with all financial transactions, you need to understand how this option will address your particular needs over the long and short term.

No mortgage is truly without costs. By choosing a “no-cost” mortgage, you pay a higher interest rate on your loan in exchange for reducing the amount of money you will need at closing. Generally, the interest rate on a “no-cost” mortgage ranges from half a point to a full point above the market rate.

Fees commonly financed and paid by the lender in a no-cost loan include points and processing fees and fees for credit reports and appraisals. (A “point” is 1 percent of the outstanding principal balance of a loan.) A “no-cost” mortgage makes the most sense when you are likely to move or refinance within a relatively short period. The following example shows why.

You want to refinance your $150,000 mortgage with a 30-year fixed rate loan, and you have two options. Under loan A, you would receive a mortgage at 7 percent with fees of $2,500. Under loan B, you would have a “no-cost” mortgage at 7.5 percent. (This example assumes the costs for each loan are identical, but that might not be the case in real life as lender programs may differ.) You will pay $998 per month on loan A. You will pay $1,050 per month on loan B, or $52 more per month.

After four years (at 49 months), the total of the extra amount ($2,548) you’ve paid on loan B will exceed what you saved at closing ($2,500). Unless you sell your home and pay off loan B or refinance loan B to obtain a lower rate mortgage, you will pay considerably more for loan B over the life of the loan. If, however, you sell or refinance at a lower rate after three years, you may save money by having avoided the out-of-pocket costs at closing UNLESS your mortgage carries a prepayment penalty.

If cash is very tight at the time of closing and you are confident that you can make the higher monthly payment and that the home will increase in value over time, the higher payment of a no-cost mortgage may still be okay for you, even if you can’t refinance at a lower rate after the fourth year. However, if you have the cash available, it may make sense to opt for the lower interest rate mortgage and pay the discount points and fees in cash at closing. Other points to consider:

• You need to check whether a “no-cost” loan carries a prepayment penalty to discourage you from refinancing as soon as you can find a lower-rate mortgage. Prepayment penalties may require you to pay six months of interest or a percentage of the outstanding principal balance of the loan.
• Check exactly what fees may be waived on a “no-cost” mortgage. Chances are you will still need to pay escrows for hazard insurance and property taxes, local transfer taxes, daily interest from the closing date to the first day of the next month, and perhaps other items at closing.
• Don’t confuse “no-cost” mortgages with “no-cash” mortgages. With “no-cash” mortgages, the closing costs are added to the outstanding principal balance of the mortgage, not to the interest rate. This means that you are borrowing more money than you would under a no-cost or regular mortgage and paying interest on it over time.

A note about loans with pre-payment penalties

 Pre-payment penalties can be part of most types of loans, so be sure to ask your lender whether your loan carries one. Generally, loans with pre-payment penalties offer lower initial payments in exchange for a promise to pay the additional lump sum if the borrower refinances prior to a date specified in the mortgage. The amount of that lump sum is also specified in the mortgage. If you think you will refinance, you may not want a pre-payment penalty on the loan.

For instance, a 2 percent prepayment penalty could be a significant amount of money — for every $100,000 left on your loan balance, you would have to pay $2,000. The best way to make a decision on whether or not to pay the penalty is to compare the cost of the penalty to the difference in your payment now and what the payment will be after you refinance.

For example, if the refinance transaction costs $3,000, and it would save you $300 a month, it would take you 10 months to recover the cost of the transaction. Generally, if you can recover your costs within a year, or if you are reducing the interest rate on your mortgage by 2 percent or more, refinancing is a good option even with the pre-payment penalty.

Any time you refinance, it is important to look at the savings on your monthly payment vs. the cost of doing the refinance. (In this case, it would involve the cost of the pre-payment penalty plus closing costs on the refinance transaction.) After that, you need to determine how long it will take you to get back what you paid to do the transaction.

Make sure you understand
You should understand all the terms of the mortgage you choose, so you won’t be surprised down the road. That’s why it’s so important to choose a lender who makes you feel comfortable and welcomes your questions. Mortgages are complicated financial transactions, but lenders are experienced in explaining ins and outs to home buyers.

What’s in a Mortgage Payment?
A monthly mortgage payment includes at least two parts: an amount that goes toward the principal of the loan (the money you’ve borrowed) and a second amount that goes toward interest (the cost of borrowing the money).

For most homeowners, however, there is also a third part of the mortgage payment: an amount that is paid into an escrow account that the lender maintains for you to pay for things like homeowners hazard insurance, property taxes, condominium and association fees and mortgage insurance (if applicable). This is the element of the monthly payment that can go up or down even in a fixed-rate mortgage.

Together, these elements are called PITI:

• P — Principal
• I — Interest
• T — Taxes
• I — Insurance

Your tax and insurance costs
Homeowners must pay property taxes and they must have some type of homeowners insurance. Depending on state laws and other variables, most lenders require homeowners to pay into what is called an “escrow account.” In this account, the lender or mortgage servicer keeps enough money to cover your property taxes and homeowners insurance. You pay into this account each month as part of your mortgage payment. When your taxes are due, the lender/servicer pays them for you. The same is true for your insurance.

The lender/servicer sends you a periodic statement showing how much is in this account. You can compare the statement with your property tax bill and your homeowners policy to ensure that the right amount is being held to cover the payments. The Real Estate Settlement Procedures Act (RESPA), which is enforced by the U.S. Department of Housing and Urban Development (HUD), is the major law covering escrow accounts.

It is important to maintain the required property insurance on your home. If you don’t, your lender/servicer can buy insurance on your behalf. This type of policy is known as “force placed insurance”; it usually is more expensive than typical insurance, and it provides less coverage.

If you’re buying a house, most sellers disclose the amount of the annual property taxes on the house when it is listed for sale. If they don’t, you can easily get this information from your local property tax assessor. A local insurance agent can give you an idea of the annual insurance cost. Divide each of these numbers by 12 and add them to the principal and interest to get the estimated total monthly payment.

What is private mortgage insurance?
If a buyer puts down less than 20 percent of the selling price on the mortgage, lenders may require the buyer to buy another type of insurance called private mortgage insurance (PMI). This provides insurance to the lender in case the buyer is not able to repay the loan and the lender is not able to recover costs after foreclosing the loan and selling the property.

The annual cost of PMI can vary but usually is between .19 percent and 1 percent of the total loan value, depending on the loan terms and loan type. PMI can be paid up front but most buyers prefer that it be included in their mortgage payment. The cost can vary based on several factors that include: loan amount, loan-to-value ratio, occupancy (primary home, second home, investment property), documentation provided at loan origination, and probably most of all credit score.

Once the principal of the loan reaches 80 percent (the owner has 20 percent equity in the home), the PMI is usually no longer required and can be canceled, although you may have to prove your equity by having a new appraisal done to show that the house is worth at least 20 percent more than you owe on it. (Note: Some lenders may require that PMI be paid for a fixed period even if the principal reaches 80 percent.) The cancellation request must come from the servicer (the company you send your mortgage payment to) of the mortgage to the PMI company that issued the insurance.

Note: PMI may be waived or avoided through some types of government or other loans. Check with your lender to determine your situation.

A PITI Payment with PMI
Maria and George have found a home that costs $150,000. They are able to make a downpayment of 5 percent, or $7,500. The annual property taxes are $1,650 and the annual homeowners insurance is $780. These payments are made in monthly installments in their mortgage and are held in an escrow account. When their taxes and insurance are due, the lender (or mortgage servicer) makes the payments for them.

Because their downpayment is less than 20 percent, Maria and George will pay PMI as part of the mortgage payment. With a 30-year fixed mortgage and an interest rate of 6 percent, the PITI with PMI is as follows:

• Principal and Interest (P and I): $854.36
• Monthly Property Taxes (T): $137.50
• Monthly Property Insurance (I): $65.00
• Private Mortgage Insurance (PMI): $85.50
• Total payment: $1,142.36

Making bi-weekly payments
Paying half your mortgage every two weeks instead of a full payment once a month can be done with most any type of loan but is most common with a 30-year fixed-rate loan. Doing so pays your mortgage more quickly because you pay the equivalent of 13 months of payments each year. For people who can budget to make a half-payment every two weeks, this offers more rapid building of equity. You can choose to do this on your own. Many people have it automatically deducted from their checking accounts.

Because your payments are applied to the loan every 14 days, the principal amount decreases faster, saving you more in interest costs. Your loan term shortens to 22 or 23 years, providing a substantial decrease in total interest costs. For example:

Monthly mortgage payment (12 months/12 payments): $997
Interest paid over the life of the loan: $209,263
Paid off in 30 years

Half payment (13 months/26 payments): $498 ($997 / 2)
Interest paid over the life of the loan: $155,938
Paid off in 22-23 years

Interest savings over the life of the loan are $53,325 – paid off in 22-23 years instead of 30 years!

Paying additional principal
Another option — if you can afford a slightly higher monthly payment — is to achieve the same savings with monthly payments. To do this, you would need to pay an extra amount of principal to your total mortgage each month. Using the above example, with a mortgage payment of $997, you would add $83 a month ($997 divided by 12) toward the principal (You will need to specify the extra amount for “principal only” on your payment.), making your payment $1,080. The interest savings would be the same and the loan would be paid off about seven years early, but you wouldn’t have to commit to making payments every two weeks.

Qualifying for a Mortgage
To some potential buyers, particularly first-time buyers, the prospect of meeting a mortgage lender may seem a little scary. Lenders ask a lot of questions because they want to help you get a mortgage. If you work with a lender before you decide on a home, you will know whether you’ll qualify for a mortgage large enough to finance the home you want.

It may seem that your lender needs to know everything about you for the application, but actually all the lender needs to know about is employment, finances and information about the home you’re buying (but you can be pre-approved before you choose a home). You will, however, need to provide quite a few details about these topics. The goal is to arrive at a monthly payment you can afford without creating financial hardships. Here’s an idea of what lenders consider when they are qualifying you for a loan:

Your household income and expenses
Lenders look at your income in ways other than the total amount; how you earn it is also important. For example, income from bonuses, commissions and overtime can vary from year to year. If these sources make up a large percentage of your income, your lender will want to know how reliable they are.

Your lender will also consider the relationship between your income and expenses. Generally, your fixed housing expenses (mortgage payment, insurance and property taxes, but not repairs or maintenance) should not be more than 28 percent of your gross monthly income, although this is not an absolute rule. Your lender will also consider other long-term debts, such as car loans or college loans. It is a good idea to bring the following when you meet with your lender:

Income

• Employment, salary and bonuses, and any other source of income for the past two years (bring your most recent pay stub, previous year’s W-2 or T-4 forms and tax returns if possible)
• The most recent account statement showing the amount of any dividend and interest income you received during the past two years
• Official documentation to support the amount of any other regular income you may receive (alimony, child support, etc.)

Employment history
Job stability is a factor that a mortgage lender will look for, and two years at your current job helps, but this also is not an absolute requirement. If you change jobs but stay in the same line of work, you should not have a problem — especially if the job change is an advancement or increase in income.

Credit score
Your credit score also helps to predict how likely you are to repay the mortgage debt.

Personal assets

• Current balances and recent statements for any bank accounts, including checking and savings
• Most recent account statement showing current market value of any investments you may have, such as stocks, bonds or certificates of deposit
• Documentation showing interest in retirement funds
• Face amount and cash value of life insurance policies
• Value of significant pieces of personal property, including automobiles
• Debt Information
• The balances and account numbers of your current loans and debts, including car loans, credit card balances and any other loans you may have

Underwriting
The lender does the best possible job of ensuring that a borrower qualifies for a loan. The final decision, however, rests with the lender’s underwriter, who measures the total risk that the specific investor, who backs up the loan, is taking. Each investor (or investment company) has its own underwriting guidelines (often using statistical models), so while the underwriters evaluate many of the same factors as the lenders, they may look more closely at some areas than others, depending on the guidelines. For example, while the lender may have pre-approved you before you chose a home, by the time you get to underwriting, you will have chosen the property you want to buy, and the underwriter will review the property details closely.

However, most of the information used is the same as that used by the lender, but it may be evaluated differently. The underwriter will evaluate the borrower’s ability to pay (income), willingness to pay (credit history), and the collateral (property). As underwriters analyze each of these risks (although this is not a complete list), here are some possible guidelines they may use:

Income

• Is the income sufficient to repay the loan? Ratio guidelines of 28 percent payment-to-income and 36 percent total debt-to-income are standard, but some programs allow for higher ratios.
• Is the income stable from month to month and year to year?
• Has the borrower been on his/her current job and in the same industry for a sufficient amount of time? A minimum of two years is the standard guideline, but exceptions can be made.
• Can the income be verified?

Credit

• Does the borrower have a good credit score (typically, 680 or higher is considered good)?
• Does the borrower have late payments, collections, or a bankruptcy? If so, is there an explanation that can be provided for the late payments/collections/bankruptcy?
• Does the borrower have excessive monthly debts to repay?
• Is the borrower maxed out on credit cards?

Collateral
Is the property worth what the borrower is paying for it? If not, the lender will not loan an amount in excess of the value. If the appraisal comes back less than the offer on the house, sometimes you can renegotiate the terms of the purchase contract with the seller and his/her real estate agent.

Some borrowers agree to purchase the home at the price they originally offer and pay the difference between the loan and the sales price. You need to have disposable cash to do this, and you should assess whether the property is likely to hold its value. You also need to consider the type of loan for which you have qualified. If you need to move suddenly and have a large loan relative to the original value, and the property has not held its value, you could face a difficult cash shortfall when you go to pay off your loan.

Is the property an acceptable type of property, and does it meet coding requirements and zoning restrictions? Is the property comparable to other properties in the area? Surveys are common and are used to get an accurate measurement of the land that goes with the property you are purchasing. The person who prepares the survey should be a licensed land surveyor. The survey shows the location of the land, dimensions of the land and any improvements.

Encroachments are improvements to property that illegally violate another’s property or their right to use the property, such as building a fence that is actually on your neighbor’s property instead of yours, or constructing a building that crosses from your property to another’s property without their permission. Evidence of encroachments can slow the final approval process.

The downpayment
A downpayment is a percentage of your home’s value. The type of mortgage you choose determines the downpayment you will need. It can range from zero to 20 percent, or more if you wish.

A number of loans are available that do not require high downpayments, particularly for first-time home buyers. FHA loans, for example, may require less than 5 percent down, and veterans or those on active duty in the military can obtain loans with no downpayment at all. In addition to downpayment assistance, these programs may have less strict guidelines for loan approval, such as allowing a higher ratio of payment to income or debt to income. They also may accept alternative forms of credit history if you have not established credit through traditional means — credit cards and car loans. For example, a lender could look at the history of utility payments and rent payments to determine credit worthiness.

Several state and federal programs provide downpayment assistance but may have income and other guidelines. See Special Programs.

For more information on qualifying for a loan, see How Do You Buy a Home? Step 5: Submit the Application .

Mortgage Basics
The key in choosing a loan that best fits your needs is to evaluate your finances and choose the best type of loan that fits your budget and your long- or short-term investment strategy. A mistake that many consumers make is to choose the type of loan that will allow them to buy the house they want without fully understanding the terms associated with lower-interest rate loans. This section is to inform readers about the most common loan types available and to map out the pros and cons.

There are two basic categories of mortgages: the fixed-rate and the adjustable-rate mortgage (ARM). Within these categories, there are many variations. However, in nearly all mortgages, two factors are usually at odds: how predictable the payments are and how low, or affordable, they are at least initially.

Borrowers choose fixed-rate loans because the mortgage payments are steady and predictable, allowing for easier household budgeting and planning. But in so doing, they give up a lower initial mortgage payment.

Borrowers choose adjustable-rate mortgages because the mortgage payments are initially lower. A lower initial payment makes the home more affordable at first, but the borrower must also be willing to accept the risk of — and be confident in their ability to afford — an increased mortgage payment, sometimes significantly higher. In some cases, there’s even the possibility of an increasing loan balance or negative amortization.

To recap, getting a loan with adjustable payments results in lower payments at first but exposes you to some risk of high payments later. On the other hand, locking in steady predictable payments gives you a higher initial payment than the ARM, but you know exactly what you owe in principal and interest at any given time.

Ontario Car Loans

GreenTree Trust will make financing a car in Ontario almost effortless by providing a quick credit application that is both easy to complete and non-intrusive. The Car Loans Ontario credit application has been specifically designed for the bad credit car loans.  It does not require its borrowers to answer embarrassing personal questions, asking only for only the most relevant of information.

Bad Credit Car Loans in Ontario

GreenTree Trust will help thousands of Canadians in all ten provinces and both territories obtain a bad credit car loan. In Canada, car loans have become a specialized industry where lenders that focus on “bad credit car loan Ontario” may not offer the same service in another province or territory.

Financing a Car in Ontario

GreenTree Trust has recognized that it is crucial to have access to lenders that specialize in bad credit car loans for Ontario.  We are in the process of  carefully selecting a network of lenders who have helped thousands with financing a car in Ontario.

Car Loans in Ontario

In Canada, car loans no longer require an uncomfortable meeting with a bank’s loans officer. GreenTree Trust willoffer a simple online credit application that takes all the awkwardness out of applying for a bad credit car loan in Ontario. Whether you are interested in financing a car in Ontario, or any other province or territory you can get a bad credit car loan today and you will soon be able to apply.

Student Loan Interest Relief

Canadian students are lucky to have a fantastic monetary tool at their disposal.  It is called Interest Relief and it is designed to help you during periods of low income or unemployment.  Lets face it, if you have a Government Loan, they want you to pay it back.  In fact, as a taxpayer, so do I!  To ensure that this takes place you can apply for relief.  What does this relief entail? 

During periods of Interest Relief:

• You are not required to make payments on either the monthly interest or the outstanding principal of your loan.
• The Government of Canada and/or the Government of your province or territory will pay the interest on your loans for you.
• Any voluntary payments (full or partial) you choose to make during periods of Interest Relief will go directly toward reducing your outstanding principal. These payments are not mandatory, and they will not affect your current or future eligibility for Interest Relief.

Extended Interest Relief

If you are still unable to make your payments and it has not been 5 years since you left school, you may be eligible for Extended Interest Relief.

How can you determine if you are eligible?

To be eligible for Interest Relief, all of the following conditions must be met:

• Your monthly gross family income (before deductions) must fall within the maximum income guidelines.
• You must reside in Canada. Note: For the purposes of Interest Relief, if you are participating in an international internship program or if you are a member of the Canadian Armed Forces who is stationed abroad, you are considered to be residing in Canada.
• Your loan must not be in default (that is, not in collection with the Canada Revenue Agency or another collection agency). Note: If you filed for bankruptcy on or after May 11, 2004, you may still qualify for Interest Relief even if your loan is in default.
• You must have signed a Consolidation Agreement for your Canada Student Loans. If you have not signed a Consolidation Agreement, contact the National Student Loans Service Centre and/or your financial institution, to request one. 
• You must meet all eligibility criteria in the month your application is dated.

If you really need some help, I would suggest visiting CanLearn.

Online Auto Loan

Online car financing has become a huge component in the Auto loan industry. With the resources offered at GreeTree Trust, not only can the buyer arm him/herself with all the information needed before accepting an offer but he/she can fill out an application for an online auto loan. Online car financing is a tool everyone should use.

Online Car Financing

According to Jupiter Metrix, 5.7 million cars will be sold on the Internet by the end of 2006. This works out to one in every three cars sold. J.D. Power & associates claim that 62% of new car buyers visit the Internet before buying a car. It is clear that online car financing is easy and accessible enough for all types of people looking for a car loans. Even people looking for bad credit loans apply online.

Canada or US Car Loans

Many consumers will make the mistake of only looking at their bank when shopping for car loans. The assumption that banks will offer the best rates when it comes to car financing is often a mistake. In many cases, companies who specialize in automotive financing offer better rates than banks due to the shear volume of car loan business they do. Frequently, the automotive dealer will get you a better rate through your own bank than you would. The exception to this rule is the use of a personal line of credit. Banks will sometimes offer their customers a revolving line of credit at a lower interest rate than a traditional car loan. However, you may have to use a good portion of this lending tool that is normally reserved for home or emergency purposes. It is important to keep in mind your long term plans.

The Benefits of Online Car Financing

• Streamlines the process of securing financing.
• Free of charge.
• Easy to do.
• No loan officer to deal with in person.

GreenTree Trust will offer a fast easy to complete online credit application and we will link you to specialists who will match you with a lender offering the best terms and rate based on your current circumstances.