Home Equity Loan Broker in Ontario
You worked hard for your home, now let your home work for you.
You could be sitting on a gold-mine. As you pay off a mortgage, the market value of a home is accrued over time.
When we talk about equity, 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 in Ontario. The amount that you can take out is based on the value of your home.
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!
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. With that we make the process as easy as possible to unlock the equity in your home!
Types of home equity loans
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.
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 mortgage 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.
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
What do appraisers look at for home equity loan in Ontario?
Home appraisers look at two main factors for home equity loans in Ontario - the value of your home as well as any outstanding loans you may have on it.
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.
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.
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.
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.
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.
How much money can you borrow with a home equity loan?
In Canada, the amount you can borrow with a home equity loan is typically limited to a maximum of 80% of your home's appraised value, minus your existing mortgage balance. To qualify for a home equity loan, you generally need to have a minimum of 20% equity in your home. Your equity can increase over time as you pay off your mortgage, make improvements to your property, or due to changes in the real estate market. The specific loan amount will depend on your home's appraised value and the outstanding mortgage balance.
How do I figure out how much equity I have?
To determine your home equity, you need to subtract the amount you owe on your mortgage or any other loans secured by your property from its current fair market value. This calculation will give you the equity, which represents the homeowner's interest in the real estate property. By knowing the current value of your home and the outstanding loan balance, you can calculate the amount of equity you have accumulated in your property.
How large should my HELOC be?
The size of your Home Equity Line of Credit (HELOC) should be based on your specific needs and financial situation. Instead of seeking the largest credit line available, carefully consider your intended use for the funds and determine the appropriate amount. Keep in mind that having a large HELOC may make it more challenging to obtain additional loans or lines of credit, even if you have no outstanding balance. Assess your requirements and set up the loan or credit line accordingly to meet your specific borrowing needs.