The key, of course, is making sure your payments are manageable and doesn’t get out of control. One of the best ways to affordably borrow money 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.
Canadalend.com has been helping clients from coast-to-coast tap into a home equity loan in Ontario for home improvements and repairs, combining credit card payments, and even 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. After you’ve been approved, you can access the available credit at any time, without ever having to reapply.
There are two types of home equity loans: Fixed-Rate Loan and Home Equity Line of Credit.
Fixed-Rate Home Equity Loan: Customers that come to Canadalend.com for a fixed-rate loan lock all or a portion of their outstanding 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 mortgage interest rates.
Home Equity Line of Credit: 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 mortgage interest rate.
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.
It’s not uncommon for homeowners to fall into the cycle of spending, borrowing, spending, and then falling deeper into arrears. 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
Just like a credit card, a HELOC (home equity line of credit) gives homeowners the freedom to spend their money when they like and repay it in a way that best suits their financial needs. A HELOC 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 or other consumer loans.
But, when it comes to a home equity line of credit, the interest rates are significantly lower than anything offered by a credit card company.