The first step to tapping into your home equity involves understanding your options. There are two types of home equity loans: a fixed-rate home equity loan and home equity line of credit. Both types of loans have a set term, but each is structured differently. If you are considering borrowing against property, Canadalend is here to help. Canadalend loaning against property essentially refers to a situation in which the borrower takes a loan where the security for the loan is a property that is owned by the borrower. The nature of the property will determine the amount of the loan that is possible.
Canadalend is a trusted name when it comes to assisting residents of Toronto, Brampton and Mississauga, as well as many other Canadian cities, in securing home equity loans. The team of experts at Canadalend provides clients with the utmost quality of service and advice for solutions on home equity loans. Here is a look at options for borrowing against property.
Home Equity Loan
A home equity loan is basically a second mortgage. You receive a lump sum of money at a fixed rate of interest that is locked in when you obtain the loan. You are expected to pay back the loan in fixed monthly payments for a fixed amount of time. The amount available to homeowners for second mortgages depends on the equity they have in their house. Home equity is the value of your home minus all the debts you have against your home. The loan can be used to consolidate debt, pay for home renovation costs, pay for children’s education, or simply to have disposable cash on hand.
Home Equity Line of Credit
A home equity line of credit, by contrast, functions more like a credit card, but it uses your home as collateral. The lender assigns you a maximum amount you can borrow, basically a credit limit that is based on the equity you have in your property. Many homeowners opt for a home equity line of credit because of its flexibility; it allows homeowners to spend the equity in their home at any given time. The funds are paid back based on current market interest rates.
Canadalend: Loaning against Property
Applying for a home equity line of credit with Canadalend is a fast, simple, and convenient process. Fully licensed independent brokers have a proven track record of helping homeowners secure financial products.
If you are interested in tapping into your home equity, or you want to know what your options are, contact Canadalend for information about loaning against property. Canadalend will evaluate your current financial situation and put their best effort into helping you decide which products are best for your financial and lifestyle needs. With full compliance and transparency, you can trust that Canadalend provides customers with solutions that enable financial freedom, peace of mind, and 100 percent satisfaction.