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Home Equity Loans in Guelph

A loan where real estate acts as security is best known as a home equity loan. As the name suggests, approval for this type of loan depends upon equity and not credit scores which are often relied on by banks. We have a network of experienced professionals who have been providing home equity loans in Guelph, Ontario for many years. Our company also serves other cities in the vicinity including Whitby, Toronto, and Brampton.

Terms and Conditions for Home Equity Loans in Guelph

This loan is typically provided as an initial or second mortgage with 7%-15% interest for a one-year term. A standard home equity loan is an open mortgage whose payments can be completed early if the borrower feels up to it. Taking the chance to finish a loan before its due date is a good thing for a credit score and it allows you to move on with important projects. However, taking this path means you are ready to pay three months interest in penalty fees. This said, home equity loans are still chosen over traditional bank loans, which are too rigid. You will always find a loan officer from our company who is ready to discuss your situation and customize the best loan that will suit your needs.

Popular Options Include:

  • Interest Only Mortgage: For this, the principal is untouched, as you only need to pay interest.
  • Blanket Mortgage: Multiple products are put up as security in a bid to secure more funding.
  • Construction Draw Mortgage: We pay your contractors to finish your project without a hitch.

Our specialists can include more variations to the loan agreement to make sure that it indeed does meet your special needs.

How Much Can You Borrow with a Home Equity Loan

Home value and the total of debts on it are enough to determine the loan amount you are eligible to receive. For a clearer picture of risk, home equity lenders in Guelph must get a metric known as loan to value (LTV) ratio of the property. It is obtained by dividing total current debts on the house by its current selling price. The result of this division should never exceed 85% for any lender to consider your application.LTV is the most important deciding factor for a home equity loan but some lenders are also sensitive to the borrower’s credit score.

Common Uses for a Home Equity Loan

Once approved, you are free to use this loan as you want. If lenders ask why you need the loan, it is not to disqualify you but only for the sake of records. During our tenure in the Guelph market, our experts have identified some of the best uses including home renovations, business investing, paying off debt and education. A few people only want access to this money so they can pay for a dream car or idyllic vacation.

  • Renovation: this money is used to make necessary upgrades and repairs to the home.
  • Business: Many choose to inject this money into their businesses so that they can make a profit.
  • Education: Countless people want home equity loans to pay for higher education.
  • Debt Consolidation: Rather than be overwhelmed by expensive loans you can take this loan and pay any money owed so that you remain with one big but manageable debt.

The loans we offer can be used in any way based on your priorities. It can be your way out of a foreclosure, power of sale or high medical charges. Home equity lenders do not restrict borrowers on how to use the money, unlike traditional lenders who can reject applications based solely on the reason for needing credit.

Differences Between Home Equity Loans and Home Equity Lines of Credit (HELOC)

An HELOC is a form of revolving credit which is, in fact, different from installment loans like home equity loans. This means that the payment terms and rates are always the same but for a home equity line of credit, it is possible to negotiate terms. While you need new contracts for access to additional funds from your loan, the HELOC can be used at any time the need arises. Though so different, the only comparison is that both types of credit are approved according to property’s equity.

A loan where real estate acts as security is best known as a home equity loan. As the name suggests, approval for this type of loan depends upon equity and not credit scores which are often relied on by banks. We have a network of experienced professionals who have been providing home equity loans in Guelph, Ontario for many years. Our company also serves other cities in the vicinity including Whitby, Toronto, and Brampton.

Terms and Conditions for Home Equity Loans in Guelph

This loan is typically provided as an initial or second mortgage with 7%-15% interest for a one-year term. A standard home equity loan is an open mortgage whose payments can be completed early if the borrower feels up to it. Taking the chance to finish a loan before its due date is a good thing for a credit score and it allows you to move on with important projects. However, taking this path means you are ready to pay three months interest in penalty fees. This said, home equity loans are still chosen over traditional bank loans, which are too rigid. You will always find a loan officer from our company who is ready to discuss your situation and customize the best loan that will suit your needs.

Popular Options Include:

  • Interest Only Mortgage: For this, the principal is untouched, as you only need to pay interest.
  • Blanket Mortgage: Multiple products are put up as security in a bid to secure more funding.
  • Construction Draw Mortgage: We pay your contractors to finish your project without a hitch.

Our specialists can include more variations to the loan agreement to make sure that it indeed does meet your special needs.

How Much Can You Borrow with a Home Equity Loan

Home value and the total of debts on it are enough to determine the loan amount you are eligible to receive. For a clearer picture of risk, home equity lenders in Guelph must get a metric known as loan to value (LTV) ratio of the property. It is obtained by dividing total current debts on the house by its current selling price. The result of this division should never exceed 85% for any lender to consider your application.LTV is the most important deciding factor for a home equity loan but some lenders are also sensitive to the borrower’s credit score.

Common Uses for a Home Equity Loan

Once approved, you are free to use this loan as you want. If lenders ask why you need the loan, it is not to disqualify you but only for the sake of records. During our tenure in the Guelph market, our experts have identified some of the best uses including home renovations, business investing, paying off debt and education. A few people only want access to this money so they can pay for a dream car or idyllic vacation.

  • Renovation: this money is used to make necessary upgrades and repairs to the home.
  • Business: Many choose to inject this money into their businesses so that they can make a profit.
  • Education: Countless people want home equity loans to pay for higher education.
  • Debt Consolidation: Rather than be overwhelmed by expensive loans you can take this loan and pay any money owed so that you remain with one big but manageable debt.

The loans we offer can be used in any way based on your priorities. It can be your way out of a foreclosure, power of sale or high medical charges. Home equity lenders do not restrict borrowers on how to use the money, unlike traditional lenders who can reject applications based solely on the reason for needing credit.

Differences Between Home Equity Loans and Home Equity Lines of Credit (HELOC)

An HELOC is a form of revolving credit which is different from installment loans like home equity loans. This means that the payment terms and rates are always the same but for a home equity line of credit, it is possible to negotiate terms. While you need new contracts for access to additional funds from your loan, the HELOC can be used at any time the need arises. Though so different, the only comparison is that both types of credit are approved according to property’s equity.

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