Home Equity Loans and Mortgages Windsor, Sarnia and London, Ontario
If you need some money and own your own home you can use the equity in your home to pay for any outstanding or urgent bills. A home equity loan in Windsor, Sarnia and London, Ontario is a basicaly a loan secured by your home. To determine the equity in your home you find the present market value of your home (ask a local realtor for an estimate) from this deduct any loans, mortgages and liens that are presently against the property. Here are two examples of how to determine the loan to equity value of your home in Windsor, Sarnia and London, Ontario:
Example 1.
Market Value of Home $400,000.00
Less 1st Mortgage $200,000.00
Total Equity $200,000.00
Loan to Value Ratio 50%
Example 2.
Market Value of Home $300,000.00
Less 1st Mortgage $100,000.00
Total Equity $200,000.00
Loan to Value Ratio 33.3%
In both of the above examples the total equity in each home is $200,000.00. In example 1 the loan to value ratio is 50% and in example 2 the loan to value ratio is 33.3%, in both examples there is ample room to increase the loan amount and have a low interest rate. Equity lenders in Windsor, Sarnia and London, Ontario will lend up to a certain loan to value ratio ratio for your home, each lender has different criteria for the loan to value ratio.
Most lenders in Windsor, Sarnia and London, Ontario will not exceede a total loan to value ratio of 85%. We recommend borrowers not to exceede a loan to value ratio of 75% if they want to get the lowest rate of interest possible. You can still get a loan at a loan to value ratio that exceedes 75% but the interest rate will be higher.
Home owners in Windsor, Sarnia and London, Ontario should also keep in mind how long they will need the funds for, if you just need the funds for a short period of time then you should not lock into a long term closed mortgage. As mortgage brokers we recommend open mortgages which allow the borrower to pay off the mortgage early, also note that open mortgages have a 3 month penalty for early repayment.
Home equity loans in Windsor, Sarnia and London, Ontario can be used for many different purposes:
Home renovations – get a new bathroom, kitchen or roof and increse the value of your home.
Personal requirements – pay for weddings, medical bills or education bills for your children.
Reduce credit card debt – you can convert high interest credit card debt into low interest debt and save hundreds of dollars per month.
Our mortgage agents have access to many different lenders in Windsor, Sarnia and London, Ontario, these lenders will compete for your business and offer you the most competitive interest rates available . Call now for your home equity loan in Windsor, Sarnia and London, Ontario.