This is a secured loan where a property is used as security. There is a fixed monthly payment and term.
Am I eligible for a Home Equity Loan?
As long as you own a property you are eligible.
How much can I qualify for?
You can qualify for up to 65 percent of the value of your home. We calculate the current value of your home minus what you’ve paid on your mortgage so far.
Value of your home – the amount owning on your mortgage = home equity
For example, if your home is worth $500,000, you would be eligible for a mortgage of $325,000 so if you currently owe $200,000 – you have $125,000 worth of equity available. If you owe nothing on your home and it is worth $500,000, we can lend you up to $325,000.
Is this a HELOC (Home Equity Line Of Credit)?
No, traditionally not, however on a case-by-case basis we can look at that as an option. We have more information on HELOCs here.
If I am currently in arrears with my mortgage payments and / or property taxes, am I still eligible?
Yes, we can lend on the equity of your property and will take your specific circumstances into consideration.
What are my payment options?
Flexible, from interest only to regular payments and all things in between
Is there an interest only option?
What if my credit is not that great?
It’s okay! Credit ratings are designed to do one single thing, and that is rank consumers based on their level of risk to a borrower. However, the credit rating system is not perfect. The parameters of how credit is scored are very narrow, factors such as if you pay your credit card bills on time, how many times you have requested credit, how frequently you’ve changed jobs, and a variety of other metrics. What credit ratings don’t take into account are most external factors, such as illness in the family, job loss, business loss and/or marital break-up. These things can have a devastating impact on your credit, yet are not explained in a credit report. Some folks purposely don’t have credit cards to avoid taking on debt or are successfully self-employed and deal primarily in cash.
What’s the catch?
Taking out a home equity loan is an important decision. Before entering into a plan, consider how you will pay back the money you borrow. Remember that your failure to repay the amounts you’ve borrowed, plus interest, could mean the loss of your home. If you are properly prepared, you should be able to sign on the dotted line with peace of mind. So, if you’re ready to take the next step contact us today and we’ll get the ball rolling!