ATT'N BC Teachers

There's an old story about a guy that is going around the scene of a battefield, pulling the boots from dead soldiers. Asked why he was doing that, he says "Hey, a guy has to make a living somehow."


For those in the Internet world with No Boundaries, in British Columbia, Canada there is a pretty big ideological fight going on over our public education system. Our public school teachers are on strike and have been since last June. The current government (called the Liberals but ironically more right wing than what the term suggests) have not negotiated a new contract with the teacher's union in over 10 years. In fact, they were found guilty 2x of attempting to union-bust and are currently appealing for the second time in Canada's Supreme Court.

BC's current public education system is represented by the guy on the right

Anyways, all you BC teachers know this; I'm just updating the dozens outside BC that are unaware of your situation. Keep reading and I will get to a small way I may be of help financially.

As this drags on the 90% of BC parents who rely on the public education system are caught in a war of words and mis-information. Everyone has picked a side but as the dispute plays out in the game of public opinion, it belies the fact that there are a lot of teachers out there that are starting to have troubles paying their bills. Much has been said of how the extended legal battle (again, original verdict in 2002) has drained the union's coffers. Food drives are being organized on behalf of teachers standing strong and walking the picket lines, other unions are starting to pledge financial help to the teachers while the government continues to state there is no money in the system to provide decent wage increases to make up for a decade of declining economic worth. Like I said, I'm going somewhere with this...


Basically, it boils down to if BC taxpayers are going to be subsidizing more private school education (free enterprise system) or providing some major surgery and support on the current public system that has suffered a decade of budget cuts (socialist system).

How capitalists visualize socialists or people who sympathize with the teachers...

So this goes out to the teachers, those that may be facing the economic strain of standing up for the future of BC education. Vancity Credit Union is the first financial institution to come out and try to provide help in regards to the 40,000+ teachers affected by the strike.

OK teachers, (and of course others in a similar situation) it had me thinking; What can I do?

I'm a mortgage broker, not a mediator. Everyone else seems to be pointing out that this dispute is highly unethical and rather media-biased. I can't do anything about the non-negotiations but wait for the Court decision, as is everyone else.

Y'all need to simmer down, I have some deciding to do.

There are two ways I can help;

1) I can act on your behalf to pull some equity out of your home to help with your current predicament. It's called a Home Equity Line of Credit or HELOC for short.

What a HELOC would do is allow you access to a certain % of your home's value (the current lending/market value-your current owing).  Most lenders will lend up to 80% of that difference.
So what that means if you have a house worth 400,000 and a mortgage of $300,000, lenders will take 80% of that $400,000 ($320,000) and minus your amount owing ($300,000). That extra $20,000 would be your HELOC. It's not necessarily straight cash and you will have to pay it back but it's secured on the strength of your home's value.

A HELOC can be used for many things, including consolidating debt, lowering your monthly payments or breaking your current mortgage (perhaps I've found you a lender willing to give you a better interest rate).

2) Another option is to refinance your home and lower your monthly mortgage payments. 

Put simply, perhaps you are paying 3.55% interest on your $300,000 mortgage. You have 22 years left on your amortization and are currently paying $1634 monthly.
Perhaps I can find you a lender that is willing to give you a 30 year amortization on that balance of $300,000 at 3%.  That would lower your payments to $1260 - saving you over $400 a month.

Yes, the length of your mortgage amortization will increase but most lenders accept extra payments and you can make a lump sum payment, bringing down your principal at the end of the term as per your situation suits you.

-For either of these options I would need information including your current mortgage statement and your lender. I may need some of your spouse's information as well. I would need proof you are in the BCTF, of course.

I can't promise anything - this will obviously be on a case-by-case basis with your current lender and your overall financial situation. The HELOC does require you already having a fair bit of equity in your home but it doesn't hurt to check into the possibility. Don't hesitate to contact me in any way - my info is up on the right there or just click on this link.

A financial capitalist with socialist leanings? I feel like I'm taking crazy pills!

Okay, on behalf of all of us with kids either in the education system or going into it, I thank you for what you are doing.

-jay