A home equity loan is one that is secured with real estate properties. It is provided by a special kind of creditors who are not bothered by the borrower’s credit. Equity is more important to home equity lenders who are in real estate business. We have a large team with years of experience providing home equity loans in Belleville Ontario.
The typical home equity loan is actually a first or second mortgage on a property. It is offered at an interest rate of 7% to 15% for a one-year term. A home equity loan is also an open mortgage that can be ended early if you like. Choosing this option means, you have to pay three months interest as a fine. Despite these interests, people are still attracted to home equity loans, which are more flexible than regular bank loans. Our lenders in Belleville are always ready to discuss various options to give you a loan that is perfectly tailored to your needs.
Custom Options Include:
Our loan experts can include your preferences in the loan agreement so don’t hesitate to explain your situation.
Borrowers qualify for varied loan amounts based on their property’s equity. To make sure that you are worthy of credit the lender must go a step further to calculate a metric known as LTV or loan to value ratio. It is obtained by dividing the total debts on a property with it current market value in the hopes of a result that is below 85%. Our home equity lenders in Belleville are willing to loan up to the maximum LTV, as anything more would be too big of a risk to bear. While loan to value is most important, some lenders also rely on employment and credit score to reach a decision.
We offer reasonable loan amounts that will indeed help you achieve your financial goals in Belleville. You can use the money to pay for education, invest in a business or home renovations.
The home equity lenders in Belleville might ask why you need the money but that is only for records. You are allowed to use the money in the way you like as long as you can repay before the term expires.
Our home equity loans in Belleville allow you to pay for your immediate needs when money is tight. In some cases, home equity is used to stop a power of sale; help loved ones, or pay emergency bills.
The term home equity loan refers to a type of installment loan while an HELOC is a type of revolving credit. In simple terms, an HELOC has flexible rates and repayment periods, while for home equity loans, the conditions are non-negotiable after the mortgage agreement is signed. You receive an initial lump sum when approved for the home equity loan. The only similarity between a home equity loan and the home equity line of credit is that both are cleared according to the home’s equity. It is also important to repay on time and as per the agreement to avoid major losses.