Morgix Answers Personal Finance Questions


Post Summary:
Morgix is a Canada wide private lender and financial services company seeking to help folks with common financing and mortgage issues. From HELOC’s to debt consolidation, and even first time mortgages, Morgix answers your questions here.


This question and answer session is compiled from several interviews and appointments held at Morgix offices throughout Canada over the last couple months.

The people asking the questions posted had given permission for their financial questions to be used to help other people via this Morgix post. The main topics touched on here will be HELOC (Home equity line of credit) and second mortgages, as offered by Morgix all across Canada

A Visit With Customers @ a Morgix Office

Thanks to everyone in the Morgix offices here on Bloor Street, Toronto for letting us visit your space. This will only hurt a little bit, but we promise, the answers to these questions will help others choose the financial products they need to direct their future decisions. With your help, and the help of Morgix, perhaps we can make a few lives easier today.

Question 1 – Melanie Has Too Much Debt

Q) Hello, my name is Melanie, I’m from Scarborough and was wondering what the best way to tackle my remaining debt and car loan would be? I’ve made the mistake of taking one too many mail-in offers that I’ve received. Sure they looked good on the initial offer… Once the initial period expired I was left with a balance owing that only seemed to grow, despite my payments. What can I do to reduce my debt burden?

A) Hey Melanie, here’s the trouble. Those mail out offers are all traps. It’s the point. These huge financial companies are basically fishing and you’ve unfortunately taken the bait. Sure, there’s a way you can take advantage of these offers for cheap temporary credit. However, if you maintain a balance past the initial offering period as you’ve done – You’re going to have a heck of a time getting up and out.

If the mountain of debt feels like a mountain of anxiety we’d better look at doing a debt consolidation loan. In your situation I guarantee Morgix could save you plenty of money each month. The interest rate on those cards is probably obscenely above 17%, and it’s crippling. It’s only by legal loophole that they are even legal.

What is a Debt Consolidation Loan? What we’ll do is have a Morgix agent buy out all of your existing loans, cards, and debts. Morgix will package them all together in one account that will allow you to focus on one outstanding amount. Not to mention, you’ll get an interest rate on the debt consolidation loan worthy of bragging.

By getting all of your debt into a single account with a lower interest rate, your payments can do more damage. This will help reduce the debt burden, and you’ll start to see the balance go down – As it should when you make a payment.

There’s nothing worse than seeing your debt balance rise despite your efforts to pay it down. Melanie, walk on over there and see one of our Morgix agents, and walk out of here knowing that you’ve made a wise choice in changing your personal finances for the better. With Morgix.

More about debt consolidation here

Question 2 – Mohammad Wants to Upgrade

Q) Hello Morgix, my name is Mohammad, I am blessed to have a nice home that I have paid down about half of my mortgage on. My situation is this, I wish to add a pool and a nice deck to my home. How do I do this thing you have talked about where you just use that equity, the part you already own of your mortgage. I have heard it both called home equity line of credit, and second mortgage… Which is the right one for my wishes to come true?

A) Hey Mohammad, thanks for coming up to the Morgix office to join our Q & A. First off, this is a very common question. HELOC or second mortgage? The problem with this is that the two financial services are so close, that both of their definitions make them sound like the same thing.

Both a HELOC and second mortgage borrow money against the equity in your home. Essentially you’re re-borrowing money you’ve already paid down… Loaning yourself money, you might visualize, but you still have to pay it back.

A HELOC, or home equity line of credit is what we call revolving credit. A Morgix home equity loan is more of a top tier product for those with a higher customer or credit rating. It’s not a mark against the consumer, just a way to measure the risk in loaning the money.

With revolving credit, you can use what you need of the available funds, and pay back as you will.

A Second Mortgage, however borrows a specific amount of money. This balance is a portion of the equity, but can only be a static amount, and doesn’t ‘revolve’ like a HELOC. This means you have borrowed X, even though you may only be spending far less than X. There is also a specific payment period specified for a second mortgage.

The real answer, Mohammad, is that you would probably want to shoot for a home equity line of credit first. If, in the unfortunate chance you don’t qualify, then we could get you into a Morgix Second Mortgage.

The beauty of both the home equity line of credit and second mortgage products is that they can be flexible to help you draw the funds that you need in order to DO what you need. Quick capital for your heart’s desire, all with the help of Morgix.

More about HELOC here

Thanks to everyone who helped setup this quick interview. We’ll be back for more soon!

Don’t forget to contact Morgix to setup a meeting