A home equity loan and a HELOC are both great solutions as they can be used for a wide range of purposes. Some Canadians have opted to use their equity in their home to help with tough financial times due to the coronavirus pandemic.
If you are deciding between a home equity loan and a home equity line of credit, begin by considering your specific needs. If you know how much you will need to borrow and what you are going to use the money for, then going with a home equity loan might be the right solution.
In comparison, if you are not sure of how much money you need or when you might need it, a HELOC is the more flexible option out of the two.
You should also think about which loan terms you are more comfortable with. For example, would you rather have a home equity Toronto loan that you pay down on a schedule over a fixed term? Or will you be more comfortable budgeting with a variable interest rate and revolving credit?
If you need help or want to learn more about which options will work best for your situation, contact one of our expert mortgage advisors in Ontario today. The licensed mortgage professionals at Canadalend are here to help you understand every part of the home equity loan process and will be here with you every step of the way.
Simply put...
You could be sitting on a gold-mine. As you pay off a mortgage, the market value of a home is accrues over time.
When we talk about home equity in Ontario, we mean the amount of ownership built in a home. This comes from the value of a home minus the total of the mortgage. You can draw out money from your home in various forms to pay off bills, conduct renovations or even go on a vacation.
One such solution is a home equity loan. As the name suggests, this is where a property owner can draw money from the equity built up in their home. The amount that you can take out is based on the value of your home.
A home equity loans Ontario or home equity loans Toronto allows you to tap into the value of your home equity as its market value increases over time. Our expert lenders in Ontario understand that there can be many different situations where you might need access to the funds brought in by a home equity loan regardless of other factors like having low income or a low credit score.
Benefits of a home equity loan
One of the main benefits of a home equity Ontario loan is that the approval process can be quick and painless. In many situations, the loan application will be approved within hours, and the loan can be funded in 48 hours with the help of our mortgage brokerage in Ontario.
If you need money quickly, this type of loan is one of
the best solutions available to you right now. Another
key advantage of going with a home equity loan is that
the borrower’s credit score and income will not play a
major role in determining the rate of approval.
Plus, home equity loans in Ontario typically have much lower interest rates than major credit cards. By saving money on interest, you can use it to pay down the principal amount that you owe from your home equity Toronto loan much faster than you would have paid off a credit card with a 20% interest rate.
How we can help:
Lower interest rate vs. credit cards
Combine your bill payments
Lock in a fixed rate
Feed and grow your other investments
Flexibility of interest-only payments
Finish your college degree
Fast funding provided as a lump sum
Use it as retirement income
Use it to renovate your home
Help manage your debt
Cover your emergency expenses
And much more!
When to use a home equity loan vs. a home equity line of credit (HELOC)
How we make it happen...
If you own your home, then you can qualify for a loan! It's that easy! Unlike the big banks, we don't focus on a list of factors. At Canadalend.com, we don't fuss over your citizenship, your credit history, or your income level. What we do look at, is your home value and outstanding loans. We make the process as easy as possible to unlock your home equity potential for home equity loans Toronto.
Home Value
Remaining
Mortgage
Home Equity
Types of home equity loans
Fixed-Term Loan
A Fixed-Term Loan is a one-time lump-sum loan that you pay back on a monthly basis. The payments stay the same month to month, so you can easily budget without expecting any surprises.
HELOC
Homeowners can also take out a line of credit commonly referred to as a HELOC, a ‘Home Equity Line of Credit’. This is available provided you have at least 20% equity in your home and a good credit rating. This provides you with access to funds as you need them on a competitive interest rate.
We offer a range of solutions for all your financial needs!
The licensed mortgage professionals at Canadalend.com want to make sure you understand every aspect of the home equity loans process, every step of the way. This includes working out the best amortization period; whether a fixed or variable mortgage is best for your particular situation, or whether you want an accelerated repayment plan. It also means going over the fine print, making sure you understand the terms and conditions and are fully aware of any costs or penalties. We make sure you get the best rate for your home equity loan in Ontario.
At Canadalend.com we are dedicated to 5 star customer service.
Get in touch with us and a lending specialist will help set up
an appointment for a free personal consultation. We will help
you review your mortgage options and find the solution that fits
your needs!
Frequently asked questions
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What do appraisers look at for home equity loan?
Home appraisers look at two main factors for home equity loans - the value of your home as well as any outstanding loans you may have on it.
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What are the disadvantages of a home equity line of credit?
One of the disadvantages of a home equity line of credit is that a lender can take possession of your home if you miss payments. It can be tempting to overspend or carry debt if you have a large amount of credit available to you.
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Does a home equity loan hurt your credit?
No, a home equity loan will not hurt your credit as long as you repay it on time.
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Should I refinance or take out a home equity loan?
That depends on what your end goals are. If you want to find a lower interest rate for your mortgage, refinancing is a better option. If you need a loan and have built up equity in your home, then a home equity loan is better for you.
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What is a home equity loan?
With a home equity loan, you are getting a secured term loan that enables you to borrow money against the equity in your home. The amount of money you can borrow for a home equity loan will depend on the amount of equity you have accumulated in your home.
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Why would I want a home equity loan?
There are lots of reasons a home equity loan can be a great idea. It offers much lower interest rates than credit cards, can help you manage your debt and can be used for whatever purpose you see fit – whether that’s to help fund your retirement or pay for college for your kids.