Home equity loans as the name suggests, are given to property owners against equity. These lenders are not bothered by other factors like income, credit, and job history that a bank would be concerned about. We give clients with poor credit score a chance to actualize their financial goals using assets they already own. We are an experienced team of lenders, giving out home equity loans in Wasaga Beach for many years now.
Terms and Conditions for a Home Equity Loan in Wasaga Beach
This loan is given as a first or second mortgage on a property for 7%-15% interest per month. Payments should be finished by one year but as an open mortgage, you can end it earlier. Choosing to end the loan before 12 months are over attracts a fine of three months interest. Home equity lenders choose to give the money as a registered mortgage as a way of mitigating the risk. They are allowed to sell your property if you cannot honor loan payments.
Despite the fixed terms, home equity loans are a popular choice among people who need mortgages. We have a loan officer available to listen to your needs and recommend the most appropriate home equity loan.
Popular Custom Home Equity Loan Choices:
- Interest Only Mortgage: You only need to pay interest for this loan and principal is untouched.
- Blanket Mortgage: You can use more than one property as security when you need more financing.
- Construction Draw Mortgage: We can pay your contractors to finish your building without a hitch.
Our team puts your needs into consideration and make a fully customized mortgage agreement for you.
How Much Can You Qualify For
Loan amounts vary depending on the equity in your home. Home equity lenders must calculate a metric known as loan to value (LTV) ratio to decide who to give a loan. This is done by dividing the debts by the price of a home to get a value ideally below 85%. Our home equity lenders are ready to loan up to 85% LTV as anything more indicates too little equity for the lender to leverage. While loan to value is the most important factor, some lenders may use credit score to decide on the interest rates to charge. At 7%-15%, interest rates for this loan might be high but this is only because the lender must protect their interests. Even with a registered mortgage, recouping is not guaranteed as lenders who went before must be first to claim their money.
Ways to Use the Loan
Our officers have learned that there are countless ways to spend the money but some are more popular than others are. You can use it to pay bills, buy a car, or invest in a business, home renovation, or education. Our lenders do not question why you need the money, as they believe you know your priorities best.
- Debt Consolidation: You can pay off other expensive loans using the money.
- Education: Pay your kid’s school fees to keep them in school using a home equity loan.
- Business Investing: The money can be used to fund a startup, expand a business, or pay for a marketing campaign.
- Renovation: This loan is often used to pay for home repairs and upgrades. Renovations are an ideal means of value addition.
The loans we provide can be used in other ways including to pay for emergency treatment, stop a foreclosure and power of sale.
Differences Between Home Equity Loans and Home Equity Lines of Credit
A home equity line of credit or HELOC is a type of revolving credit like a credit card. This means that the terms and conditions may change as time passes by. With an HELOC, you can withdraw any amount to serve your needs as long as you don’t surpass the credit limit. Home equity loans are much different because they are to be paid in fixed installments. The only thing similar between an HELOC and home equity loan is that both loans are only approved based on equity. Our team can discuss your preferences and recommend the best loan accordingly.