Calgary Line Of Credit Lawyers
If you are starting a credit line with an Alberta lender, you will probably need to involve a lawyer. A credit line, or line of credit, is a loan that you can access as needed. Most credit lines can be paid back without any penalty. They are usually used like a bank account but as a credit facility. The lawyers at Kahane Law Office in Calgary are able to help with the legal side of setting up your credit line. Just let your lender know that we are acting, and we will get the documents we need from the lender. If you have any questions at all, never hesitate to call 403-225-8810.
Types of Credit Lines
There are two general types of credit lines. Your lender may offer you a line of credit that is secured or not secured. Interest rates will vary. The rate you get will depend on the type of line of credit you get (as below). The rates are also based on different interest rate indicators than mortgages.
Secured Line of Credit
A secured line of credit is usually registered against real property. If it is a home equity line of credit, then the credit line will be registered against your home. This credit facility may also be secured against a rental property. There are also lines of credit that are set up for businesses. Again, they may be secured or not secured. In the case of a secured business line of credit, they are usually registered against property that the company owns.
Unsecured Credit Lines
An unsecured credit line will usually have a higher rate of interest than a secured line of credit. This is a reflection of the fact that there is more risk for the lender. The lender may require a personal guarantee from one or more of the principals of the company.
How are Lines Of Credit Secured?
A line of credit is usually secured using a mortgage. On occasion a lender may secure a line of credit using a caveat. The caveat is registered based on an agreement in writing. In this case the agreement in writing is the contract that creates the credit line. Some people are very concerned to learn that they have a mortgage on their property when they in fact have a home equity credit line. This is a normal way of securing the loan and should not cause concern.
Finding Credit Line Lawyers
The legal team at Kahane Law is happy to help set up your credit line or home equity line of credit. We are also here to answer any questions or concerns you may have. Call today. 403-225-8810 locally), or email us directly here.