Monday, July 11, 2011

Are Education Mortgages the next big thing?

With all the costs associated with day-to-day living - from mortgage payments to utility bills - it can be difficult to save for your child's education.
Canadian mortgage lender, XCEED, is hoping to make that task a little easier with its new Promoting Responsible Education Planning (PREP) Mortgage. The product is available to homeowners who have enough equity in their home to qualify for a refinance. By putting at least $1,000 of the funds borrowed into a Registered Education Savings Plan (RESP), you're automatically eligible for the PREP product.

In addition to saving five basis points off of XCEED's posted mortgage rate, the lender will also contribute $500 towards the RESP. With a starting point of $1,500 homeowners can then invest - and continue to contribute to - their RESP savings. With an RESP in place, the homeowners' children are also eligible for Canada Education Savings Grants (CESG).

The goal of the program is to make post-secondary education a little more affordable for Canadian homeowners and their children. For more information visit http://www.xceedmortgage.com/default.asp or give us a call!

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