Keeping Your Economic Future on the Right Path

This article was originally published on the Dominion Lending Centres blog.

Most working Canadians have an income range in the middle class.
This income class includes teachers, firefighters, plumbers, engineers, nurses, construction managers and chefs – workers from across the economic spectrum. They provide and consume the bulk of services that keep society afloat, driving economic growth and investment with every purchase.

by RateSeer Staff

What is Blockchain?

Simply put, a blockchain is a chain of blocks, where each block represents an electronic record that cannot be revised or tampered with once it is included in the chain. Each block has its own timestamp and a link to an earlier block in the chain, which enables all the parties to have easy access to information via a secure network.
Wikipedia explains blockchain as, "A blockchain - originally block chain - is a distributed database that is used to maintain a continuously growing list of records, called blocks. Each block contains a timestamp and a link to a previous block." Further, it is noted that blockchain is "typically managed by a peer-to-peer network", and "By design, blockchains are inherently resistant to modification of the data. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network."
Interested in learning more? The Wharton School of the University of Pennsylvania published an article exploring the question, "Is Blockchain the Next Great Hope - or Hype?".

by RateSeer Staff

What is the difference between an APR and an Interest Rate

The difference between an interest rate and an annual percentage rate is that the interest rate is the cost you pay on a yearly basis to borrow money from your lender, or, the annual cost of borrowing the principal amount. The interest rate can be variable, or fixed, and does not include fees or any other charges you may have to pay for the loan.

The annual percentage rate is the annual cost of a loan to a borrower including fees and other charges.

by RateSeer Staff

What is a HELOC?

A home-equity line of credit, also referred to as a Heloc, allows homeowners to access funds, when needed, over the term of the loan as long as the amounts stay below the loan limit.

With a home equity loan, you receive the money you are borrowing in a lump sum payment and the interest rate is typically fixed. With a home equity line of credit (HELOC), you can borrow or draw money multiple times from an available maximum amount. Unlike a home equity loan, HELOCs usually have adjustable interest rates.

A HELOC can be used to fund major expenses including home improvements or college tuition. The Line of Credit is secured by a mortgage, and typically has a 10-year term that requires interest only payments. Following the initial 10-year period, the Heloc will “reset” and the principal becomes due. At that point, homeowners can choose to pay off the balance, refinance it into another first or second mortgage or make monthly payments of principal and interest, typically for a 20-year term.

Most Banks and Credit Unions offer a home-equity line of credit. If you're interested in applying for a HELOC, take a look through the lenders we profile on rateseer.