Home Equity Loan - Quick and Easy Up To $60,000
Home equity loan mortgage is referred to loan which uses real estate as collateral. Find out what makes it different than regular second mortgages . To understand home equity mortgage loans, lets start with the very basics.
What is Home Equity?
It is home owners interest in a real estate. As you pay off registered outstanding loans on the property, home equity increases. It lowers when home owner borrows money by using real estate as collateral.
Scroll down to learn how to calculate home equity(based on appraised value) in your home & down load a mortgage calculator app for your smart devices.
Keep reading to discover how these types of loans are different than line of credit.
Up to $60 K NO Monthly Payments
Up to $100K Monthly Payments
Up to $100 K No Monthly Payments
Connect To Know Details & Which of The Options Is Best For You ...
Who Love these types of loans?
- Sophisticated borrowers who consider mortgage lenders as their partners
- Understand the concept of leveraging money efficiently
- Real estate investors who want to qualify for higher loan amounts. Like regular private second mortgages, monthly payments of these equity loans are not reported to Equifax.
What are Pros & Cons of Home Equity Based Mortgage Loan?
- NO appraisal requirement to establish home equity
- NO legal cost to retain lawyer to complete this loan transection
- NO Pre payment or Partial payment penalties
- NO 2nd Mortgage Lien is registered against the title (Notice of Security Interest registered )
- NO reporting to Credit Bureau
- YES to even 3RD lien on title
- NO Interest only payments; Flexible payments via amortization of 3, 5 or 10 years
- Gets your lump sum payment FASTER than any second mortgage
- Both Self-employed and Employed borrowers are eligible
- Rental properties and primary residence are eligible
6 Benefits of This Equity Based Mortgage Loans
- Access funds in 48 Hours post approval
- Lower monthly interest payments
- Improve your credit profile
- Improve financial flexibility
- Use funds for Bridge loans
- Simple Approval process
- Pay off (Canada Revenue Agency CRA immediately
- Paying off the loan with higher interest rates
- Build a basement to rent it out
- Finish home renovations like kitchen, washrooms, flooring to increase value of property before selling
- Use funds to cover cash call on a Joint Venture project
How to Calculate Home Equity in your home?
This means the total loan secured by your home is $400,000.
Equity in Property = (Present Value – Total Loan Regsitered on Title)
Equity = $800,000 – $400,000 = $400,000
In other words Loan to Value ratio on your home is 50%.
Scenario:
Ivan and Anya 59 & 57 years’ old distressed couple from Milton Ontario comes to my office to discuss their options and the best possible solution to their rapidly dropping credit scores.
They plan to get some equity out to buy an investment property by October 2021.
Clients January 2019 credit report shows Ivan’s beacon score of 698 and 700 for Anya. They were shocked to find their credit scores to be 654 and 667 respectively on Nov 17, 2019.
After carefully evaluating their January and Nov 17, 2020, credit reports, I found R1 & M1, no late payments whatsoever.
The one thing I did notice was maxed out VISA & Master Cards for both. Together they own almost $19,500.
They own a matrimonial home together since 1992. They have a first mortgage balance of $310,000. Their mortgage term is up for renewal on June 28, 2021.
They always made all the mortgage payments on time.
Like so many other self-employed, Ivan's business suffered a lot and couldn't work during the year 2020 due to covid 19 lock down.
Since he is self-employed and the primary bread earner in the family, they ended up maxing out their VISA & Master Cards.
Meanwhile, Anya makes sure all bills are paid on time and nothing is left behind.
Despite all their efforts, their credit score is dropping very fast. This worries them because their first mortgage is up for renewal in MAY 2020.
Their plan is to go for mortgage refinancing so that all the credit card debts get rolled into their first mortgage and they have one low monthly payment.
Both Ivan and Anya have no other means to pay off the credit cards at this point. They also are looking to buy an investment property in 2021.
They do not want to ask their kids, as they are all married and have their own mortgages and expenses to take care of.
Ofcourse, They Are Not Happy.
They both looked stressed and were worried about not being able to qualify for mortgage refinancing if their credit score keeps dropping at this rate.
After discussing their options it was established, they will need instant cash to pay off their credit card debts immediately.
If all goes well their beacon score will bounce back up by their mortgage renewal date in May 2020 and will be eligible for lower mortgages rates again.
If you or any of your family or friends are in similar or worst situation where quick cash is needed, we can help them with Equity loans or non mortgage solutions.
These quick loans are not designed to make you lose your home instead are tool to save your home by saving interest money in the long term.
Quick Loan Interest Rates
You are not at the mercy of the Bank Of Canada’s prime rate. These equity loans do not carry variable interest rates.
Your monthly payments remain the same so that you can budget better.
How are these loans different than reverse mortgages?
- There is no minimum age restriction to get qualified for equity loans
- Not like reverse mortgages, It allows you to borrow up to 80% of the value of the property value.
- This loan can be placed behind any major lender.
- and the list goes on…
How is this loan different than credit lines?
This equity loan is different than your typical bank accounts with credit lines. The credit lines are revolving credits where you can borrow, pay back and reborrow.
This quick equity loan is one shot loan for you. Once you pay it off, this loan is taken off the title of your property.
If you need quick cash and have equity in your home, connect with the mortgage broker today to get pre approval for this loan. its fast just like online banking!
You will be glad you did.
Yes you can use the strategy to access funds and build your basement. This can further help to increase monthly income
Or access to home equity can be used as retirement funds too (reverse mortgaging)
One must consult the expert to customize the plan
Thanks for sharing this important information.
Thank you for your input Mr. Chowdhry.
You are absolutely correct, in being able to use funds to finish basement or pay off owing CRA taxes.
I appreciate your interest and time.
Thank you
Is good to be informed. Thank you!
Thank You Inga.
Glad you found the info useful.
What will be the better option for a new home DP, refinancing or home equity loan?
With out getting into any other details my professional opinion is to look into the refinancing options before going ahead with home equity loans. Depending upon your existing equity and mortgeg termms including penalties you amy be ableto access more than $40,000 (if thats what you need). I hope this clarifies and provide you sone insight on which direction you may go to access home equity for your a new home down payment.
Thank you for visiting this blog page.
Great info!
Thank you Mr. Butean. Glad you found the info useful.
Thank you