Home Equity Line of Credit
This company has been helping homeowners use their home equity to their advantage, safely and securely. We can introduce you to a broad range of lenders and help you understand the workings of a home equity line of credit.
Contact us now at (416) 258-0156 to schedule a no-obligation consultation.
How Do Home Equity Line of Credits Work?
A Home Equity Line of Credit (HELOC) is an opportunity for you to use your home equity in the form of credit. You may borrow money up to a maximum credit limit set by your lender, pay it back, and borrow again as you please.
With a home equity line of credit, you’ll have the flexibility of being able to borrow as many times as you’d like, and you’ll only have to pay interest on the money you use. The lender will use your home equity as collateral, ensuring that you’ll pay back what you borrow.
How Do I Get a Home Equity Line of Credit?
To be approved for an equity line of credit, you will need to meet the following criteria:
- Adequate credit score
- Proof of employment and stable income
- Debt that out ways your income
You will also need to provide a minimum down payment or equity of at least 20%. If you want to use the equity of your home, you will be required to provide proof of ownership and in-depth details of the mortgage. Once the lender received your documentation, they will then conduct a valuation of your home.
Once you’ve been approved for a HELOC, you can access your credit whenever you need. It’s important to be wary of your spending, and it is often helpful to create a strict repayment schedule so that you don’t end up with considerable debt.
What Is a Home Equity Line of Credit?
Your Secure Borrowing Tool
Your home equity is your most secure and powerful access to borrowing credit at a low-interest rate. When you opt for a HELOC you benefit from:
- Flexible and convenient access to your credit
- Lower interest rate
- Credit limit up to 80% of the value of your home
- Borrowed finances for renovations, home repairs, and more
Is It Better to Get a Home Equity Loan or Line of Credit?
A HELOC and a home equity loan both pull from the value of your home and add to your debt. Many of our clients ask what the difference is between a home equity line of credit and a home equity loan, and it’s important to know the difference.
A HELOC is a revolving line of credit that works much like a credit card. You may draw money from your home equity as you need it and repay your principal at any time. You can also repay your entire balance at once without a prepayment penalty.
Home Equity Loan
A home equity loan is a one-time lump sum loan that can be up to 80% of your home’s value. Home equity loan interest rates are higher than HELOC interest as there is interest on the entire amount, rather than on what is used on a monthly basis.
Allow our brokers to help you manage your borrowing needs and ease the application process.
Apply for a Home Equity Line of Credit
Our experts can access the most competitive line of credit rates and will be sure to negotiate the best interest rates in the market.
For more information on HELOC, get in touch with us now at (416) 258-0156.