Canadalend is your professional home equity loan broker in Ontario. We offer more lending options at the best, most competitive rates. Our experts have a complete understanding of our products, home equity loan rates, and features, helping homeowners save money and increase cash flow.
Our experts care about your financial needs. Therefore, we strive to exceed client expectations and find you the best mortgage product for your situation. Home equity loans offer viable solutions to realizing your dreams, attaining financial freedom, investing in education, or completing renovations. They have endless uses, and many of our clients have benefited profoundly from them.
What is a Home Equity Loan?
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.
Professionals secure home equity loans through equity in a borrower’s vacation home, primary/secondary home, or residential property. Furthermore, they come in various forms, such as first, second, and third mortgages, home equity lines of credit, or refinancing a mortgage-free property.
Homeowners can obtain home equity loans in Ontario to access cash from preexisting equity in cottages, rental property, or personal residences. The reasons for taking out loans vary, from debt consolidation to covering expenses to paying for education.
Since the borrowing process involves asset-based lending than traditional first mortgages, applying for this type of loan is quicker with a more simplified process.
Types of Home Equity Loans
Two types of home equity loans exist in Ontario, each with its own application and benefits. Which one is best depends on what suits your objectives and lifestyle.
Many homeowners want the ability to budget from month to month. So, fixed-rate home equity loans make more sense.
Meanwhile, some owners prefer to access a home equity line of credit, which allows them to access money as needed. These individuals are drawn to a HELOC’s competitive interest rate.
Fixed-Rate Home Equity Loan
Fixed-term loans are one-time, lump-sum loans paid back monthly. The monthly payments remain the same, enabling owners to budget without surprises. Loans are repaid over an established time (5–15 years) with a set interest rate. Home equity loan interest rates never increase, making this a more predictable option for some homeowners.
Home Equity Line of Credit (HELOC)
Home Equity Lines of Credit (HELOC) allow homeowners to access a line of credit. This credit line is available provided there is a minimum of 20% equity in your home and you have good credit. HELOC loans provide access to funds when needed at a competitive interest rate.
For a HELOC loan, the lender pre-approves the borrower for a spending limit. Borrowers can withdraw money as needed. Payments are calculated using the current interest rate on the borrowed amount. HELOCs contain a variable interest rate. However, some lenders may convert it to a fixed rate over a fixed term.
Why You Might Need a Home Equity Loan
As mentioned, home equity loans are a viable option for achieving different financial goals. Using them strategically can save homeowners substantial money over other lending methods.
Home Renovations
Despite government incentives for upgrading existing homes, these incentives require homeowners to pay for repairs upfront and then apply for the rebate. They don’t work well for those needing to conduct renovations with limited financial resources.
However, home equity loans provide a dual benefit to clients. They offer a viable option for upgrading or fixing your home, and by investing in your home, many homeowners increase their home’s value.
Debt Consolidation
Why spend extra money on interest when you can consolidate debt into one monthly payment? Utilizing home equity loans in Ontario for debt consolidation means you only have a single monthly payment instead of multiple, and often, homeowners can save money with lower home equity loan interest rates.
Education Expenses
A good education can be essential to your success, whether you or a loved one are upgrading your skills or obtaining a diploma. Home equity loans provide a better alternative to student loans, receive faster approval, and can help save you money.
Emergency Expenses
Emergencies happen, whether involving an appliance ceasing to work, damage to your house from a natural disaster, or medical expenses. Home equity loans provide instant cash access to help you care for your possessions or loved ones promptly.
Benefits of Home Equity Loans
Homeowners reap many benefits from home equity loans. With rising costs, they provide people with a viable option to purchase or invest in the things that matter most. Furthermore, they can save homeowners money by using alternative lending methods or consolidating bills into a lower interest rate.
There are many scenarios where home equity loans make financial sense. They can alleviate financial pressure when resources are tight, help save money long-term, or allow you to invest in your future.
Your Trusted Home Equity Loan Broker
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 reviewing the fine print, ensuring 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 home equity loan broker will help set up an appointment for a free personal consultation. We will help you review your mortgage options and find the solutions that fit your needs!
Reach Out to Canadalend Today
Homeowners qualify for a home equity loan if they own their homes. Unlike big banks, Canadalend does not focus on fulfilling a list of factors. We don’t fuss over citizenship, credit history, or income. We examine your home’s value and outstanding loans, making unlocking the equity in your home effortless.
Call Canadalend at 1-844-586-0710 or email us at info@canadealend.com to discuss your home equity lending options. One of our home equity loan brokers will contact you to discuss your situation and objectives and to provide a product tailored to you. You can also visit our website or contact us here for further information.