Home Equity Line of Credit – HELOC

A home equity line of credit Brampton, Caledon, Oakville, ON can be a valuable financial resource, enabling you to access credit at rates that are generally lower than other forms of borrowing.

What is home equity?

Home equity is simply the difference between the mortgage you haven’t paid and the value of your home. The increase or decrease in equity in your home can be determined using two ways:

  • By seeing if the value of your home has increased or decreased
  • By comparing it with the total amount of mortgage repayment made

The amount of equity in your home determines the amount you can borrow against. This is a huge amount since you are borrowing against the remaining value of your home.

The benefits of home equity:

Emergency fund:

Home equity allows you to take a secured loan. This means that lenders are willing to let you borrow against the equity present in your home as this is a very low risk. Hence, It can serve as an excellent source of emergency funds and prove as something you can fall back on in times of dire need.

Multiple uses:

It can be used to finance just about anything. Since there is such a large sum of money involved, all your finances can be taken care of. You can even use it to refinance or consolidate your debt. This makes home equity one of the best plans for a mortgage borrower.

Large sum:

A home is something which is really valuable. It is probably one of the biggest assets you have invested in. Hence, you must get the most out of it. It allows you to put that investment into use. You can access quite a large sum of money against your it which stands to put you in a luxurious financial position.

How can you borrow against home equity?

Second mortgage:

This is the most common form of borrowing against home equity. You can take out another mortgage on your already mortgaged home.

HELOC:

A home equity line of credit can also be used to borrow against home equity. It assesses the equity present and gives you a limited amount against which you can borrow with ease.

Reverse mortgages:

As senior citizens, you can increase your monthly income with the help of reverse mortgages. They can help you build a fortune base for your future generations or to simply finance your dreams.

What can home equity be used for?

Home renovations: You can spice up and increase the value of your home by investing in home renovations with It.

Investments: You can use the money borrowed to invest in properties or business ventures of your choice.

Second properties: If you have wanted to buy a vacation home or simply another home, you can use this amount to finance these dreams and make another dream home your own.

Debt consolidation: If you have a lot of debt and your monthly payments are becoming the size of a small peanut, then debt consolidation can help.

Education/ Unexpected expenses: Finance your child’s education or unexpected expenses. You can also finance a New business/ Self-employment, or do retirement planning i.e. supplement income, freedom to travel, home care, pay for ongoing bills like property taxes

With home equity, you can create a financial buffer for future needs

To see if unlocking some of your home equity works for you, contact us for a free review of your current situation and future goals. We can advise how much equity you can leverage, and what your monthly payments would be.

Call us now to get Home Equity Quickly.