Frequently Asked Questions

What is the Amortization?

The total length of time it will take to payout the loan if regular payments are made.

What is the Term?

The length of time that the interest rate is fixed.

What is the APR?

Annual Percentage Rate – the simple interest Rate used to calculate interest for one year.

What is an installment loan?

An installment loan is a loan which requires a regular payment each month of both principal and interest.

How often will I make my loan payments?

Our installment loans can be paid Weekly, Bi-Weekly or Monthly to suit your preference.

Should I use my Line of Credit to pay for this purchase of a Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV?

This is never a good idea for a number of reasons:

• The item you are purchasing is excellent collateral for setting up a collateral installment loan. It makes sense to save your Line of Credit for purchases where there is no collateral available. i.e.: Vacations, emergencies, home renovations etc.
• With a secured Line of Credit you are required to pay only the interest and never the principal which often leaves you having to organize your principal payments manually each month. This results in the line of credit never being paid out; with a principal amount owing long after the purchased asset is gone.
• The bank has the right to call due payment in full of your Line of Credit at any time.
• When you sell your home, you must pay the line of credit in full.
• A fully secured Line of Credit has interest rates that are typically 1 % or 1.5 % over the bank’s prime lending rate and are subject to change at any time.
• An un-secured Line of Credit requires a payment of 3 % of the balance each month, which can make for very high payments. i.e.: payment on $20,000 is $600 per month Unsecured Line of Credit’s Have interest rates that are typically 3.5 % or 4.5 % over the bank’s prime lending rate and are subject to change at any time.

Homebrook Financial Group only sets up installment loans that come with a set minimum payment based on extended amortizations and the option of paying extra anytime. Rates are offered both in competitive 5 year fixed rate or variable rate options because the collateral for a fully secured line of credit is your house. The bank will insist that it is paid in full when you sell your home.

Will my own bank branch offer what Homebrook Financial Group is able to offer?

No, bank branches only offer loans with a maximum amortization of 5 years thus resulting in high and often unaffordable monthly payments. The loans we set up are available only through a Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV loan department offered through the chartered banks. These loans are available in amortizations of up to 20 years.

Should I cash in my investments to pay for this Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV?

No, generally your investments, even though they are at a lower rate of return, will over the long term yield higher results than the interest used to pay for your new Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV. This happens because your investment is earning interest which compound and the principal increases each month, whereas your loan is paying interest on a decreasing balance. As well, once your loan is paid in full you will still have your Boat, RV, Travel Trailer, and Personal Watercraft, Snowmobile or ATV and your new asset.

Are the Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV loans Open?

Yes, most of these loans are fully open and can be paid out anytime without penalty.

Are the interest rates fixed or variable?

We offer loans in both fixed and variable rate options.

What is a Fixed rate loan?

A Fixed rate loan is a loan where the interest rate is fixed for the term and then renews at whatever interest rate is being offered by that bank at the end of the term. Most terms are 5 year terms.

What is a Variable rate loan?

A Variable rate loan is a loan where the interest rate floats with the bank’s prime lending rate. Usually a Variable rate can be locked in at any time at the prevailing fixed rate.

Are there any advantages to buying during the Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV trade show season?

Trade Show time is an ideal time to buy! Generally during the winter months in Ontario, Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV Trade shows are in full swing. During this season the banks Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV loan departments are offering lower interest rates as they compete for your business.

Can my loan be insured with Life protection?

Yes Life protection is available and recommended!

Can my loan be insured with Critical Illness protection?

Yes Critical Illness coverage is available and recommended!

Can my loan be insured with Accident and Illness protection?

Yes Accident and Illness protection is available and recommended!

Can my loan be insured in case I lose my job?

Yes, Loss of Employment protection is available and recommended!

Can I purchase a Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV privately and finance it with Homebrook Financial Group?

No, only a Boat, RV, Travel Trailer, Personal Watercraft, Snowmobile or ATV purchase from one of the qualified dealerships within Homebrook’s Group would entitle you to use our financing services. Contact us to receive a full list of associated stores.