Learn How to Qualify for a Second Mortgage in Canada
Qualifying for a Home Equity Line of Credit has never been easier. Get Funding Fast With HomeEquityLoans.ca in Canada.
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Many homeowners in Canada aren’t aware that as they’ve made mortgage payments throughout the years that they’re building up equity in their homes. That equity doesn’t have to sit in your home, doing nothing. You can use it to make a large purchase or stabilize your finances.
At HomeEquityLoans.ca, we work closely with homeowners to help them qualify for a home equity loan as quickly as possible. Contact our office in Ontario to learn more about home equity loans and if you qualify.
What Is a Home Equity Loan?
A home equity loan enables Canadian homeowners to borrow against the equity they’ve built up in their homes. The amount they can borrow is based upon the difference between the value of their home and how much they still owe on their mortgage.
A home equity loan can be approved using your principal residence, rental property, cottage, or commercial building. You receive your funds in a lump sum and how you use the proceeds are up to you.
A home equity loan provides homeowners the ability to leverage the money they need, when they need it and is one of the truest forms of asset-based lending. Credit and income do not play a major factor in the approval process.
Why Should I Take Out a Home Equity Loan?
Canadian homeowners typically take out a home equity loan to finance their debts or unexpected purchases. However, you can use the funds for a variety of things, including:
- Funding home renovations
- Repair your credit by paying off judgments or collections
- Stop a foreclosure
- Consolidating your outstanding debts into one monthly payment
- Purchase an investment property or vacation home
- Catch up on property tax arrrears
- Eliminate Revenue Canada Debt
- Invest in your business
- Pay for your children's education
How Does a Home Equity Loan Work?
A home equity loan is sometimes called a second mortgage. Your home’s equity is the collateral for your loan. How much you can borrow depends upon how much equity you’ve built up in your home.
Typically, a homeowner can borrow up to 85% of the total equity they have. If your not sure how much you may be able to borrow, you can use our handy “home equity calculator” to see what you may be eligible to borrow
Once the amount of equity you have in your home has been determined (in most instances this involves an appraisal on your property) it’s our job to find you the best rate and terms you are eligible for and that’s exactly what we do!
How Do I Build My Home's Equity?
Your home’s equity can increase in a variety of ways.
- Making consistent mortgage payments
- Making home renovations or improvements
- Property value increases over time (i.e. appreciation)
- Make a large down payment
