Borrowing money can be a good thing

Staff writer
March 7, 2014 01:00 AM

Editor:

Many homeowners have mortgages on their homes at what would be considered to be a very favourable interest rate if compared to interest rates on credit cards, car loans, personal loans and overdrafts, would you not agree? (Compare 3.5 per cent mortgage money to the 19 per cent interest on some credit cards.)

Whereas many people are lucky enough to have some reserve money in the bank, they don't necessarily apply it against their mortgage, which they would consider being cheap money, but rather they invest it elsewhere where they can generate a greater return and then use that return to pay down their mortgage and other debt, wouldn't you agree?

Further to this, imagine your bank coming to you and saying, "If you give us your mortgage business then we are going to deposit $10,000 into your account for giving us your business."

Remind you of anything? It does me. The District can borrow $7.4 million at a preferred rate of interest, keep money in the District reserves and be given a one million dollar grant in the process. Sounds like a no brainer to me! Let not the disgruntled ones "cut off their nose to spite their face" just to send a message to council, but rather they should put their grievances aside and do what's best for the community as a whole. They can resume their positions after the referendum if they feel so inclined, but please don't mess it up for those of us who truly care about the future of our community.

Carolyn Minchin, Sechelt


© Coast Reporter

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