How does
a Scotia STEP program lower borrowing costs?
Despite the popularity of
financial products such as lines of credit, many customers are unfamiliar
with the calculations that determine the interest rates associated
with them. Customers make borrowing decisions that can be against
their financial interest, such as:
Carrying retail credit cards
from department stores, furniture stores, or electronics stores that
have a very high interest rate.
Using unsecured lines of
credit that are not backed by any collateral and have higher interest
rates as well as less flexible repayment options.
Carrying large balances
on their credit cards over long periods of time.
How
can the Scotia STEP program solve these problems for your customers?
With the security of a home
backing up a loan, Scotiabank has increased confidence that the borrower
will not default on his or her loan. If the bank is more confident,
it can charge a lower interest rate because the risk associated with
the loan is much lower.
By
moving unsecured debts such as retail credit cards or other lines
of credit, to a secured Scotia STEP line of credit, customers
will see their interest payments drop, and their
savings grow.
It's True! Many Canadians acknowledge
they have not structured their borrowing to pay the lowest amount
of interest. We can help with our market-leading borrowing solution:
Scotia Total Equity Plan.
