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A home can be a great place to live as well as a valuable asset. Being one of the larger investments one can make, if you are in need of cash, your home can be used to secure funds for a range of financial situations. This is usually done by homeowners looking to take out a home equity loan or refinancing their current mortgage.

What is a Home Equity Loan?
A Home Equity Loan can also be seen as a second mortgage. These are great when you are looking to update your home through renovations or pay off outstanding high-interest debts from credits cards or car loans.

In order to be eligible for a home equity loan, you need to have paid down some of your mortgage. The difference between the appraised value and the amount left on the mortgage make up your home equity. Even if you just started paying down your mortgage, you could have a few thousand dollars of equity available.

Why a Home Equity Loan?
Home Equity Loans have very low interest rates compared to other unsecured loans. In most cases, it would cheaper to get one for your next car rather than financing through the actual dealership. If you are stuck paying high-interest credit cards, using a Home Equity Loan to consolidate will not only get the debt paid quicker, you could save thousands in interest.

What Does It Mean to Refinance Your Home?
By Refinancing your mortgage, you are essentially negotiating a new loan – usually with better rates and terms – to pay off your existing mortgage.  

Why Refinance Your Home?
There are several reasons why someone would want to refinance their home.

• To make the payments easier. If you are able to get a better interest rate, your monthly payments drop.
• To change the terms of the loan. For example, a mortgage term can last up to 30 years. If you wanted to pay it off sooner, you could refinance to a 15-year term at better rates.

How Should You Choose?
The best way to sort out your options is to speak to a licensed mortgage professional from Canadalend.
He or she can talk to you about your options and what your payments are going to look like so that you can make an informed decision that works best for your situation.

For more information call Canadalend.com today or better yet, Apply Online and one of our Agents will contact you!

Over the years, home equity lines of credit have quickly become one of the more popular ways that homeowners leverage the value of their homes. However, when borrowing against your home it is beneficial to be more cautious around what you spend that money on – for instance, it might not be best to spend a HELOC on vacations, or new home electronics. But that leaves the question, what should homeowners use a HELOC for?

1) Home Improvements

Using a HELOC to make improvements to the backyard or inside the home can be a great way to increase the overall value of the property. Installing a pool, renovating the kitchen or bathroom, even adding a deck can be a daunting task to finance. Using a home equity line of credit can be just the thing you need to kickstart that project. Once completed, these home improvements usually add more equity to your home.

2) Emergency Funds

Financial experts say that it is a good idea to have about six months’ worth of expenses put away should an emergency arise. The equity in your home can be used as a low-interest alternative to credit cards and other high-interest loans when these unforeseen events happen. Having a HELOC already in place can give you peace of mind in an otherwise chaotic time.

3) Refinancing Debt

If you have multiple high-interest debts, getting a home equity line of credit can be a great way to consolidate at a much lower interest rate. These forms of debt are unsecured, and as such can come with rates as high as 20%! However, since a HELOC is secured against your home, the lower interest can potentially save you thousands, as well as make the number of monthly payments much more manageable.

4) Long Term Investments

Your HELOC isn’t just available to use on your home. Some homeowners choose to invest in stocks or even the real estate market. The risks associated with those investments could be high, so please do your homework! If you are looking to invest into something a little riskier with a higher return, there are many other options available to you.

5) Paying For Education

If you have a child (or several!) that are going to college or university, or even thinking about going back yourself, a HELOC could be a great way to cover tuition or any supplementary income during that time. Since the rates are relatively low, a HELOC can be a better option over a traditional school loan or credit card.

For more information contact the Mortgage Experts at Canadalend today at 1-866 iCAN LEND or better yet, Apply Online and one of our Agents will call you!

The coronavirus pandemic has derailed buying and selling activities in the property market. Albeit fewer homes have been listed for sale, the industry is gradually recovering. Prospective buyers can make purchases and sellers can list their properties for sale while adhering to prevention measures for safe transactions.

When this year started, the Real Estate Market was showing prospects of steady growth until the novel coronavirus took toll of the industry in March. With strict restrictions to limit the spread of Covid-19 put in place, householders took to a cautious approach, trying not to make purchases or listing their properties for sale.  There have been reports showing the volume of mortgage applications falling up to 24%, despite the rock-bottom mortgage rates.

Nonetheless, that's not to say that all hopes of buying and selling your home are entirely shuttered. Those who were on the verge of closing home deals or want to purchase properties they can still do so.

Here are helpful tips for selling and buying a property in an age when social distancing, wearing facemasks, and the use of sanitizers are a norm.

Do Your Homework

Despite the slump in the number of newly-listed homes, there are still excellent options in property listings. This is a time to research the market and find your preferred property in a community you like. Don't limit yourself to a few selected areas. Extend your search to other surrounding regions that might have homes with excellent value for money, amenities, and facilities.

As you spend more time indoors, it's an opportunity to assess your current home and determine the level of functionality and comfort it offers you. That helps in knowing your priorities when searching and consequently buying a home.

Speak to an Agent

Most real estate agents have communication protocols during the coronavirus crisis. They currently leverage technological tools to communicate with property buyers, offer virtual tours; negotiate and even finalize deals without having to meet them in person.

If you've inspected a listed property and are willing to close the deal, make a call to your agent for assistance on how to proceed. Agents can organize for an interactive virtual tour where you can ask questions regarding the design, condition of the property, and chattels, etc.

If selling a home is your decision, you can resort to online appraisals. Housing agents understand the market well and will be glad to offer estimates of the property's value and how it may fair in the property market.

Safe In-Person Meetings

Once you have staged your home, you want to meet the prospective buyer(s) in-person to show them the property. Instead of driving property hunters in your car, let them drive themselves to the property, so you can both rendezvous with them on site.

If you're showing an open house, bring along a hand sanitizer or place a sanitizing agent at the door to minimize the risk of contraction. Alternatively, you can also perform pre-screening procedures on the potential buyer to track their contacts if they've recently travelled.

Prepare the Home

During this time when entertainment, sports, and other social areas are closed, take advantage of this while to prep your home for the market. Preparation may entail anything from mowing the lawn, exterior repairs, tidying the gutters, and decluttering the interior.

Start with a DIY approach to reduce the workload before calling the professionals for help. Do an online home improvement search to note the additional décor that can enhance the visual appeal of the home. Once the restriction measures are eased, you can embark on implementing the changes.

For more information contact Canadalend, your Trusted Toronto and GTA Mortgage Brokers!

With the country still dealing with the COVID-19 pandemic, it is getting increasingly difficult for Canadians to meet their monthly financial obligations. Working through a job loss or reduction in hours has affected many of us, and government funded programs – like the Canadian Emergency Response Benefit (CERB) – can only cover so much. Households are finding it tough to keep food on the table, let along pay down their mortgages and other high-interest debt, such as credit cards.

Homeownership at times like these have its benefits. You can use the equity you have built over the years to consolidate some of your high-interest debts into one, easy to manage monthly payment. Even in a risky financial climate, like this one imposed by COVID-19, you can pay down your debts as well as cut down your overall monthly expenses. Interest rates are also currently at a record low, so it has never been a better time to start looking into consolidating outstanding debt. 

What Is Home Equity & How Can You Access It?

The difference between the current value of your home and the unpaid balance of your mortgage make up your Home Equity. Over time, your equity grows as you make more and more of your mortgage payments, and the percentage of ownership rises. Other factors, such as market activity, can also substantially increase the amount of equity that you have access to and can leverage. 

Homeowners looking to access their Home Equity have two options for financing: A Home Equity Loan or Home Equity Line of Credit (HELOC). A Home Equity Loan, or Second Mortgage as its often referred to as, allows you to withdraw a lump sum of money based on your available equity. You would then make monthly payments at a locked interest rate until the time of renewal. This is great if you are looking for a larger sum of money – anywhere from $20,000 to even a $1,000,000 depending on the home value.

If you choose to refinance, or take out additional equity, can use this extra money for anything from debt consolidation, investments, home renos, education, or other life expenses.

Borrowers looking to access their available home equity also have the option to pursue a Home Equity Line of Credit (HELOC). This allows you to withdraw cash from the line of credit and repay it as you find necessary, as long as the minimum monthly interest payments are made. You do not need to take out the whole line at once, it can be used more like a credit card, but at much lower interest rates. Like Second and Third mortgages, homeowners with multiple high-interest credit card debts, or high-interest loans find HELOC’s very appealing. This ability to allow the borrower to pay only one interest-only payment, at a much lower interest rate, can make monthly financial obligations much more manageable. 

Advantages Of Consolidating Debt Through A Second Mortgage or Mortgage Refinance:

Increased cash flow: Multiple high-interest debts consolidated into one lower interest rate can increase your available monthly income and help you save money over time.

Customized financial plan: Our Mortgage Professionals can help you create a loan and debt repayment plan, spread over a 2-5-year period, to help reach – and maintain – your financial goals.

Streamlined payments: Multiple larger monthly payments can be combined into one single lower monthly payment with a lower interest rate that can help you pay down your debts faster.

Credit score: Individuals with a poor credit score can qualify for a second mortgage. This can help Borrowers to pay off their high-interest debts and start rebuilding their credit. When applying for a future mortgage or refinance, these factors can make all the difference.

Principal repayment: When individuals are forced to pay off high levels of credit card debt using only their income, they are often not able to pay the whole sum. Instead, they are left paying the minimum payments which often pay solely for the interest itself. This endless loop can leave someone in a great deal of debt, stress, and substantially limit their financial standing. A Second Mortgage, or HELOC, can allow you to pay the total sum of your credit card debt and only worry about making the appropriate monthly payments.

As you can see from the examples above, tapping into your home equity through a Second Mortgage, or Refinance, can be quite advantageous. A Private Mortgage is also a great option for potential borrowers with bad credit that are worried about the often complicated approval process. Since homeowners are using the equity built into their home, they are seen as less of a risk to potential lenders. The application process becomes much quicker and more streamlined. Home Equity Loans can also be very beneficial to self-employed individuals who have a difficult time with reportable income.

If you are interested in accessing your home equity and consolidating your high-interest debts, the trusted Mortgage Brokers at Canadalend can help get you approved quickly and easily. With access to a very large pool of private lenders, banks, and credit unions, Canadalend will work tirelessly to get you the best mortgage rate for your individual needs.

Call Canadalend today at 905-881-0242 or email us at info@canadalend.com to speak with an experienced Mortgage Broker who can help you get out of debt faster.