Home Equity Line of Credit (HELOC)

None of us like getting into debt, but sometimes it’s unavoidable. The key, of course, is making sure your debt is manageable and doesn’t get out of control. One of the best ways to affordably borrow money—one that doesn’t saddle you with mile-high interest rates and a payment plan that lasts for decades—is with a home equity line of credit also known as HELOC.

A HELOC allows you to borrow money at a low mortgage interest rate using the equity you’ve built up in your home. As the leading low-cost private mortgage solutions provider, Canadalend.com has been helping clients from coast-to-coast tap into a home equity loan in Ontario for home improvements and repairs, to consolidate debt, to help pay for their kids’ tuition…virtually anything!

Unlike high-interest loans or credit cards, a HELOC is not only easy to apply for; it’s also designed to help you build your savings as quickly as possible. With the help of your licensed independent Canadalend.com agent, homeowners only ever need to apply for a HELOC once! After you’ve been approved, you can access the available credit at any time, without ever having to reapply. You can also repay your home equity line of credit at your own pace, whether that means paying back as much as possible as soon as possible or making low monthly payments that cover the interest.

The best part is that as your outstanding balance decreases, the available credit at your disposal increases.

Fixed-Rate Loan vs. Home Equity Line of Credit

There are two types of home equity loans: a fixed-rate loan and home equity line of credit. Both types of loans have a set term, but are structured differently.

Customers that come to Canadalend.com for a fixed-rate loan lock all or a portion of their outstanding home equity line of credit (HELOC) balance into a fixed interest rate for a closed term of one to five years. Choosing a fixed-rate home equity loan can give you peace of mind from knowing your regular fixed payments are protected from any increases in interest rates.

A home equity line of credit is a little like a credit card. You qualify for a set spending limit that you can access at any time and your repayment schedule is based on the amount, type of HELOC, and any fluctuations in the interest rate.

In and across the GTA and Ontario, home equity loans are most commonly taken as loans with a fixed rate of interest and a home equity line of credit. While both a fixed-rate loan and home equity line of credit are about refinancing, they differ in structure. With a fixed-rate loan, a homeowner can take the loan as a lump sum payment, which is then repaid over an agreed-upon time frame at a fixed interest rate.

Breaking Down the Home Equity Line of Credit

A home equity line of credit is not entirely different from a credit card, except the interest rate is better and it comes with an even more flexible repayment schedule. A HELOC comes with a fixed spending limit, which is based on the equity you have in your property. Many homeowners opt for a HELOC because of its flexibility; it allows borrowers to spend the equity in their home at any given time, which is then paid back based on current market interest rates.

In other words, a fixed-rate loan is linear, meaning you borrow money and pay it back on a fixed schedule at a fixed-rate. A home equity line of credit (HELOC) is more fluid; you can borrow and pay back at your leisure.

Some of the benefits of a HELOC that homeowners find most attractive are:

  • A predetermined spending limit
  • Flexible spending
  • Zero time-based limitations

Why Opt for a Home Equity Line of Credit?

Just like a credit card, a HELOC gives homeowners the freedom to spend their money when they like and repay it in a way that best suits their financial needs. But that’s where the similarities end! When it comes to a home equity line of credit, the interest rates are significantly lower than anything offered by a credit card company. If you’re a homeowner with a high credit card balance, the mortgage specialists at Canadalend.com can help you pay down your debt and switch to a low interest home equity line of credit or fixed-rate home equity loan in Ontario.

Applying for a home equity line of credit with Canadalend.com is a fast, simple, and convenient process. Whether you live in an urban centre like Toronto, Hamilton, Brampton, Mississauga, Orangeville, Kitchener-Waterloo, Cambridge, Barrie, London, Ottawa, Ajax, or Pickering, or a rural area like Leamington, Schomberg, Cookstown, Port Elgin, Kincardine, Goderich, Dryden, Kenora, or Haliburton, Canadalend.com’s fully licensed independent mortgage brokers have a proven track record of helping homeowners secure the financial products best suited to their lifestyle needs.

A HELOC (home equity line of credit) is the ideal choice for homeowners who need continuous access to equity on their own terms. Not only is the repayment schedule flexible, but the interest rate you pay on a home equity loan, while higher than that of a first mortgage, is drastically lower than what you’d pay on a credit card of other consumer loans. If you need to tap the equity of your home or want to pay off a high-interest credit card balance, call your Canadalend.com specialist today.

What You Need to Know Before Securing a Home Equity Loan?

It’s not uncommon for homeowners to fall into the debt cycle of spending, borrowing, spending, and falling deeper into debt. If not managed properly, personal debt loads can get out of hand.

At Canadalend.com, we will evaluate your current financial situation and decide which products are best for your financial and lifestyle needs. Our goal is to make sure that you are comfortable with the terms of your home equity line of credit.

If you are interested in refinancing your home mortgage, or even want to know what your mortgage options are, contact Canadalend.com or apply online and a mortgage specialist will help set up an appointment at your earliest convenience.