Home equity loans are approved based on the equity in a property presented as security. It is a loan in contrast to the ordinary bank mortgage, that is only approved after looking at your credit score and job history. Even clients with a poor score can be approved for a home equity loan from private lenders. Our company has many years of experience providing home equity loans in Gravenhurst, ON.
This is issued as a standard mortgage for one year. It might be the first or second loan on that property but as an open mortgage, you have the right to end things early. Paying a fine of three months interest is enough to get it dome. In the interests of private lenders, you will get a registered loan on the property. This is protection enough for them in case you default as they can go ahead and sell the house.
Home equity loans are more popular than ordinary mortgages because they can be tailored to the customer’s preferences. A loan specialist will discuss your needs and include them in the mortgage agreement.
Common Custom Options Include
You can get any loan amount that your equity qualifies for. To reach a decision, private lenders must calculate an important metric known as loan to value ratio. This is obtained by dividing total debts by the price of a property. Our home equity lenders in Gravenhurst are ready to loan up to 85% on a property. They must ensure that there is enough equity left so that they can be compensated in the event a power of sale in the house is executed. Even with a loan to value being an all important metric, there are home equity lenders who decide based on other factors like job history and credit score.
It is impossible to list all the uses of a home equity loan because they are as varied as the people who call Gravenhurst home. Some people have serious uses for the loan while others use it to pay for vacations and expensive cars.
Our home equity loans that we offer in Gravenhurst, Ontario have rarer uses like paying for emergency treatment, helping loved ones, stopping a power of sale or foreclosure. Our lenders never place restrictions on how to spend the money with respect to priorities and diverse needs of clients. This is much different from an ordinary bank loan for which you must give a valid explanation.
In reality, the only similarity between a home equity loan and home equity line of credit is that they are approved based on loan to value. Home equity lines of credit are a type of revolving loan whose interest rates change with the passage of time. An HELOC as a home equity line of credit is popularly known is accessible to the client whenever it is needed but keeping in mind the credit limit. For a home equity loan, you have to pay in agreed installments, at defined interest rates for a clearly stipulated length of time. Our lenders will help you discern between the two so you may end up with the right product you seek.