If you are considering tapping into the equity you have built up in your home, it is very important to be well informed before you choose to work with any lender. Your home is an incredibly valuable asset, and requires a great deal of care and respect. A Canadalend home equity loan is an available option to you, and a qualified mortgage specialist will help you understand all options available to you before making a decision with your home equity.
What Is a Home Equity Loan?
As a homeowner, you are in a unique borrowing position; A home equity loan is basically a second mortgage and is secured against the equity in your home. If you come equipped with the right approvals, you can borrow against your home’s equity with a Canadalend home equity loan. Equity in the home is the difference between the current appraised value of the home and the amount owed on the first mortgage. Lenders are typically comfortable adding to your current mortgage with a home equity loan because they are safeguarded by the fact that your loan is secured against your home. A Canadalend mortgage professional will work with you to determine the amount of money you can borrow against your equity.
A home equity loan can be used for several purposes, including:
- Consolidating debt
- Covering home renovation costs
- Paying for your children’s education
What are some of the benefits and disadvantages of a Canadalend home equity loan?
Benefits of a Home Equity Loan
- Homeowners are able to consolidate debt into one low interest rate monthly payment
- By paying off outstanding debt, you will improve your credit score
- The loan can be spread across the lifespan of your mortgage (often up to 25 years)
- Helps to repay mortgage and tax arrears
Disadvantages of a Home Equity Loan
- You are risking your home if you cannot pay the loan back
- When you borrow against your home you lose equity or ownership in the home
- Once you get the loan money you may be tempted to spend it, instead of paying off debts
- You will need to pay closing costs, which may include a home appraisal
The trusted team of mortgage professionals at Canadalend provide home equity loan assistance to those living in the Mississauga, Oakville, Toronto, Vaughan, Scarborough and nearby areas. Contact us today to see if a Canadalend home equity loan is right for you.