Home Equity Line of Credit in Ontario
One of the best ways to borrow money!
One of the best ways to affordably borrow money is with a home equity line of credit - also known as HELOC. This allows you to borrow money at a low mortgage interest rate using the equity you’ve built up in your home.
For years Canadalend.com has been helping clients get a home equity loan in Ontario for various purposes, including undertaking home improvements and repairs, combining credit card payments, and even helping to pay for kids’ tuition.
Unlike high-interest loans or credit cards, a HELOC is not only easy to apply for; it’s also designed to help you build your savings as quickly as possible. After you’ve been approved, you can access the available credit at any time, without ever having to reapply.
The benefits of a HELOC for homeowners
A predetermined spending limit
Zero time-based limitations
Lower interest rate vs. credit cards
Use it to renovate your home
Cover your emergency expenses
Manage your debt
Combine your bill payments
Fixed-rate loan vs. Home equity line of credit
Fixed-Rate Home Equity Loan
You can lock all or a portion of your outstanding HELOC balance into a fixed interest rate for a closed term of one to five years. Choosing a fixed-rate home equity loan can give you peace of mind from knowing your regular fixed payments are protected from any increases in mortgage interest rates – you will always pay the same amount.
Home Equity Line of Credit
A home equity line of credit is a little like a credit card. You qualify for a set spending limit that you can access at any time and your repayment schedule is based on the amount, type of HELOC, and any fluctuations in the mortgage interest rate. This means you can’t guarantee that the cost of your payments won’t go up.
While both a Fixed-Rate Loan and Home Equity Line of Credit are about refinancing, they differ in structure. With a fixed-rate loan, a homeowner can take the loan as a lump sum payment, which is then repaid over an agreed-upon time frame at a fixed interest rate. With a HELOC you can draw out money as and when you need it.
Low rates and flexibility
A Home Equity Line of Credit offers a flexible repayment schedule and a competitive interest rate. At the time of writing you could take out a HELOC with a rate of just 2.35%.
Many homeowners opt for a HELOC because of its flexibility; it allows borrowers to spend the equity in their home at any given time.
However there are limits to the HELOC. The value of the home equity line of credit and the mortgage combined cannot be worth more than 80% of the value of the home, while the value of the home equity loan of credit cannot exceed 65% of your property value.
We've can help you secure a HELOC and tap into your home equity
It’s not uncommon for homeowners to fall into the cycle of spending, borrowing, spending, and then falling deeper into arrears.
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
How hard is it to get a home equity line of credit?
As long as you have equity built up in your home, then a home equity line of credit (commonly referred to as a HELOC) is easy to apply for! You can access your HELOC whenever you need it.
Can you negotiate a home equity line of credit?
Yes, you can negotiate the limit of your home equity line of credit. If you are approved for a higher amount of credit than you need, you can ask us for a lower credit limit if you would prefer one.
Do I need an appraisal for a home equity line of credit?
Yes, you will need an appraisal if you want your application for a home equity line of credit approved. We need the appraisal to determine the value of your property – which then determines how much credit you are eligible for.
What is the difference of a home equity loan, and home equity loan of credit?
A home equity loan is a specific amount of money you get all at once. You then have to pay a specific amount back each month, with a specified interest rate. A home equity line of credit lets you borrow money when you need to, then pay it back and borrow it again as necessary.
What is the maximum home equity line of credit?
In Canada, you can only borrow up to 65% of your home's value with a home equity line of credit. The value of your home equity line of credit combined with your mortgage cannot be worth more than 80% of the value of your home.
What is the current interest rate on a home equity line of credit?
We offer home equity lines of credit at a competitive rate. At the time this FAQ was published, you could take out a HELOC with us at a rate of just 2.35%.