Home Equity Loans Made Simple
You’ve been intentionally confused by the banks who have made borrowing your equity complicated or feeling impossible. Today is the day to discover how simple a Home Equity Loan can be.
Here are the basics of a Home Equity Loan and what my clients ask me the most about so you will be seen as a respected and capable supporter of your family. I will go through them here.
What Is a Home Equity Loan?
A home equity loan in simple terms is when you borrow an amount of money that is part of the verified value of your property. The amount borrowed is backed up by the home itself. More on what a home equity loan is.
In looking at a home equity loan, the reason to borrow is typically to get new money from your existing equity.
Are Home Equity Loans a Good Idea?
There are some great reasons to consider a Home Equity Loan.
Some of the best reasons I have come across are pretty common too. You are looking to consolidate inefficient debts. The house is tired and you are trying to fix it up before selling it. You are finally prepared to venture out on your dream and start that business.
The main thought here is that you are getting a Home Equity Loan in order to assist you in achieving a better tomorrow.
What Is The Interest Rate On A Home Equity Loan?
When you look to borrow your Home Equity there are multiple factors that determine what the rate ends up being. The rates can range from 5 – 12% and higher depending on your home, your credit, and your income.
Securing your best interest rate on a Home Equity Loan requires the diligent effort of finding the best lender for your situation. This process includes access to time sensitive market information, ongoing mortgage rule changes, and promotional offers that exist.
As your Mortgage Agent I have access to all the best options to achieve your best interest rate.
How Do I Calculate How Much Home Equity I Have?
The simplest way to calculate how much Home Equity you have is to determine what your home is worth.
Then you minus all of the mortgages and other debts that are backed up by your home. The amount remaining is what is available.
Now borrowing the full amount of the value of your home is very unlikely for a lender to agree to. Typically lenders like to see a minimum of 10% of your property’s value to remain in the home after you borrow a Home Equity Loan. More likely they will want to see 20% remaining equity.
Quick example: Home Value = 1 Million – Mortgages 500K = 500K available – 200K (20% of home’s value) = 300K available in a Home Equity Loan.
How Much Can You Borrow On a Home Equity Loan?
Each lender in Ontario is regulated differently and has a set of lending restrictions that guide their Home Equity Loans. This means who you approach will give you a different answer to how much you can borrow.
I work for you and have access to lenders who will provide up to 90% of your home’s worth in a Home Equity Loan and there are ways to achieve even more. It all comes down to how much you need to borrow of the equity in your home and why.
How Hard is it To Get Approved For a Home Equity Loan?
The approval process for getting a Home Equity Loan has become more difficult over time. Banks require your finances to be in perfect order before they will approve you for any type of Home Equity Loan product. Basically, you need to be in a position of not needing the money in order to be approved.
Generally speaking, getting approved for the best Home Equity Loan requires excellent credit, income to pay the monthly payments (even when the loan is maxed), and that you have some remaining equity left over in your home after the loan is granted.
Getting approved for a typical Home Equity Loan doesn’t require any of the above…just that you own your home and have at least 10% of your home’s value remaining after borrowing the full amount of the loan.
Can You Get a Home Equity Loan With Bad Credit?
As long as you have the value in your property that can support the loan then I have a Home Equity Loan for those with even terrible credit.
The qualification process with a typical Home Equity lender is a simplified and common sense process where lenders are looking for a reason to lend.
How Often Can You Get a Home Equity Loan?
As an Ontario homeowner your financial picture is always changing. Just because you have a Home Equity Loan or a line of credit against your home doesn’t mean that you can’t get another. And just because the bank said no to increasing your Home Equity Loan with them means that this isn’t possible.
Time has rewarded home owners with additional value in their properties. Those who took out a Home Equity loan even two years ago may be surprised to learn that there are options towards an additional Home Equity Loan or to refinance the existing one towards a better future.
How Do You Get a Home Equity Loan Completed?
The key to discovering and ultimately succeeding in securing your home equity loan is to use a simple process.
Find the right Mortgage Agent before you begin taking major steps. Interview, investigate, and look at the testimonials of potential guides in order to find one that fits with your style of approach.
Then it is time to plug you into their system and help you achieve the best outcome based on their experience and knowledge of the various Home Equity lenders.
Once you have been presented with the best loan offer for your situation it is time to decide. Then following through in meeting the required documents from the lender will assist you in successfully closing the new Home Equity Loan.
Helping You In Ontario with Your Home Equity Loan
I can help you anywhere in Ontario with your Home Equity Loan. My lender network can be used anywhere you are in Ontario. If you’re in the GTA or as far north as Huntsville/North Bay, I can meet with you in person.
If you’re further away, we can have a phone call and do everything we need to by email. Here is some information on meeting me in Brampton, Mississauga, Toronto, Barrie.
So what is at stake when it comes to letting the bank try to confuse you with their complex jargon? Or worse their rejection of your application for your Home Equity Loan?
Spending your golden years worrying about high credit card debt?…Creditors forcing you out of your home?…Seeing your children not be able to get a home?
No, that’s not how your story ends. Now is the time to take back control of your finances and become the hero one more time. Contact me today and let’s get you the Home Equity Loan you need. Your family’s gratitude is worth it!
