Tom and Yin Wong have lived in their house in Surrey, B.C. for six years. Both are in their early 40s and have two children.
- Pay off their mortgage within the next 10 years
- Install a pool in their backyard and finish landscaping
- Save for their children's post-secondary education
- Buy a new car next year
|
The Big Picture (in round numbers) |
| Appraised value of home |
$240,000 |
| Balance on mortgage account |
$85,000 |
| Balance on car loan |
$8,550 |
| Balance on gold credit card |
$2,500 |
| Balance on department store credit card |
$650 |
| How they make it work |
| |
Overall Plan Portfolio |
Current use of plan |
Credit still available |
| Value of home |
$240,000 |
|
|
| 80% of value of home |
$192,000 |
|
|
The Wongs' personal Scotia Total Equity® plan credit limit is $192,000*. They can combine all their borrowing under one plan, illustrated as follows:
|
| Mortgage Account |
$85,000 |
$85,000 |
|
| By switching their mortgage to the Scotia Total Equity plan , the Wongs can stay on track with their goal of paying off their mortgage. |
| Line of credit #1 for pool |
$35,000 |
$25,000 |
$10,000 |
| Line of credit #2 |
$25,000 |
$5,000 |
$20,000 |
| Combining their other borrowing lets them finance the swimmingpool and still keep an available credit reserve to invest in their RRSPs and their children's future education. |
| Loan for car |
$25,000 |
$25,000 |
|
| Because their borrowing is secured by the value of their home, the Wongs also qualify for lower rates on their car loans; with an existing car loan of $8,550 and a new car loan of $16,450. |
| Scotiabank Value® VISA* card |
$10,000 |
$3,150 |
$6,850 |
| By switching their credit card and department store card balances to a Scotiabank standard Value VISA card, the Wongs can save on interest costs. |
| |
Overall Plan Portfolio |
Current use of plan |
Credit still available |
| Total |
$192,000 |
$143,150 |
$48,850 |
Once the Scotia Total Equity Plan has been set up, that credit limit is always available to the Wongs, whether they use it or not (subject to maintaining satisfactory credit status).
Tom and Yin can now make their short-term plans happen without sacrificing long-term goals.
* Subject to credit approval and property meeting our residential standards.
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