28th
August 2010
This
week we present a term which will be beneficial
to you if you are thinking of taking a mortgage
some time in the near future. This week’s
term is: Guaranteed Mortgage Savings Plan
A Guaranteed Mortgage Savings
Plan is a type of savings account offered by
financial institutions which allows a potential
homeowner to save towards the deposit on the
mortgage. One of the benefits of this type of
account is that the prospective homeowner is
guaranteed a tax credit of up to $6,000.00 annually.
What
does this mean for you?
Building or buying your home is usually a large
financial investment that demands significant
resources. The Guaranteed Mortgage Savings Plan
gives you the opportunity to start saving for
this by putting funds aside for the deposit
on your mortgage. Withdrawals are not allowed
on the account until after an agreed upon maturity
date and the funds must then be used exclusively
for the deposit towards a mortgage. As a prospective
homeowner, you benefit significantly because
based on your salary you can decide how much
you want to save towards that deposit. Thus
the strain of trying to obtain cash for your
deposit when you are ready to build or buy is
removed. Several financial institutions offer
this type of mortgage savings plan such as Bank
of Saint Lucia’s Home Start account.
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