Home equity line of credit (HELOC)
One of the best ways to borrow money!
One of the best ways to affordably borrow money is with a home equity line of credit - also known as HELOC. This allows you to borrow money at a low mortgage interest rate using the equity you’ve built up in your home.
For years Canadalend.com has been helping clients get a home equity loan in Ontario for various purposes, including undertaking home improvements and repairs, combining credit card payments, and even helping to pay for kids’ tuition.
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.
The benefits of a HELOC for homeowners
A predetermined spending limit
Zero time-based limitations
Lower interest rate vs. credit cards
Use it to renovate your home
Cover your emergency expenses
Manage your debt
Combine your bill payments
Fixed-rate loan vs. Home equity line of credit
Fixed-Rate Home Equity Loan
You can lock all or a portion of your 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 – you will always pay the same amount.
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. This means you can’t guarantee that the cost of your payments won’t go up.
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. With a HELOC you can draw out money as and when you need it.
Low rates and flexibility
A Home Equity Line of Credit offers a flexible repayment schedule and a competitive interest rate. At the time of writing you could take out a HELOC with a rate of just 2.35%.
Many homeowners opt for a HELOC because of its flexibility; it allows borrowers to spend the equity in their home at any given time.
However there are limits to the HELOC. The value of the home equity line of credit and the mortgage combined cannot be worth more than 80% of the value of the home, while the value of the home equity loan of credit cannot exceed 65% of your property value.
We've can help you secure a HELOC and tap into your home equity
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 are dedicated to 5 star customer service. Get in touch with us and a lending specialist will help set up an appointment for a free personal consultation. We will help you review your mortgage options and find the solution that fits your needs!