Home Equity Loan/ Line of Credit
Need money for an investment, a business or a new car? Or you want to help your kids with their school or wedding expenses?
If you own a property and are looking to borrow funds at lower interest rates than your credit cards or 'unsecured' loans/lines of credit, a home equity loan or home equity line of credit may be a good solution for you.
Equity is the amount of ownership that you have built up in your property. It is calculated by subtracting your current mortgage amount from the current value of your property. This equity is available to you and can be accessed when you want/need funds for things like renovations, emergency expenses, investments, etc.
Solutions we can offer:
Depending on your needs and situation, there are a few ways we can help you access the equity built up in your home. One option is through an equity take out. We may combine the funds you are advancing with your existing mortgage as a new first mortgage, or, if it does not make sense to break your existing mortgage due to the rate and fees, we can advance the funds through a second mortgage.
The other option is through a home equity line of credit (HELOC). The benefit of a HELOC is you can advance funds when you need them and not pay interest when there is no balance in the account. This type of line of credit has a better interest rate than your regular ‘unsecured’ line of credit as it uses your home as collateral.
Please keep in mind that the maximum HELOC you can put on your property is 65% of its value. The HELOC and mortgage together cannot exceed 80% (maximum limit) of the value of your property.
If you have any questions, we would love to hear from you. Contact us.