How to Get a HELOC after Bankruptcy

home equity lines of creditIf you want to get a home equity line of credit after bankruptcy you’re going have to fight on your hands. The first thing you want to deal is check your credit report, here you’ll be able to a figure out how much debt you have, what bad accounts you have to handle, and any errors corrected. Instead of worrying about chasing bad lenders, you can just pay off your debts and move on with your life. Here we’re going to talk about how you can get HELOC after bankruptcy. Let’s get started, and see what a new line of credit can do for you.

What is a HELOC?

A home equity line of credit is a credit card that you use but instead of running off your credit score, lines off the equity in your home. Even if you have bad credit you still have equity, so you build the bank will not borrow the money you need. But, if you happen to have bad credit you’ll end up paying more in interest – that’s just how it goes. it’s important to understand how much equity you have in your home. You can find this information on your monthly mortgage statements, or by calling your lender.

Home equity lines of credit should only be used wisely. The last thing you want to do is waste your equity on something that is not worthwhile. It’s important to sit down and really think about what you want to use your equity for. You’ve worked hard for years to build up a sign of equity you don’t want to throw all that money and hard work away.

What is Bankruptcy?

Bankruptcy just means you’re unable to pay your debts. It’s a legal status so you’ll have to go to court to declare bankruptcy, but this also means that you can’t repay your creditors. You’re still going to have to pay what you can to settle the dispute. Bankruptcy can seriously impact your credit score, but you can still be rebuild in time – don’t try to go too fast with financing right after a bankruptcy, make sure that you’re in a good place before you start seeking financing again.

A Bankruptcy Can Drop Your Credit Score 100 Points

When you declare bankruptcy, you can lose as much as 100 points of your credit score. Depending on where you started with your credit, this can impact your financial future in a big way! It’s important to avoid declaring bankruptcy as much as possible. In the end, you will have to work with your lender to find a solution.

Work with a Co-signer

Working with a co-signer can help you boost your credit and the available line of credit that a lender is willing to give you. If you default, the co-signer will be responsible for the debt.

This is why it’s so important to know that you’re ready to borrow even if you do have a substantial amount of equity. Work with a financial planner or mortgage broker to make sure you’re ready.

To learn more about our great rates on home equity lines of credit, click here!

Getting a Secured Line of Credit With Bad Credit

A secured line of credit is just what it sounds like: a line of credit secured by collateral. This may be money or it could be equity in your home. Either way, you’re going to need to be able to put up something in exchange for the money that you need; here we’re going to talk about using equity in your home to get a secured line of credit. The application process is just like a mortgage. Let one of our smart Toronto mortgage brokers help you get the financing that you need to pay off your debts or make big ticket purchases.

What is a Secured Line of Credit?

This is a type of credit for people who just don’t have the best credit histories; if you have no credit at all, you may have to go this route. If you’re using one of these to buy a home they will hold equity in your house until you can pay the amount back. If you’re using these as part of a Canadian home equity loan, you’ll be borrowing against your home until youc an pay it back. Remember that you can’t borrow more than 70% of the worth of the home (they may go by the Appraised Repair Value if you’re going to use the line of credit to fix the house). This prevents borrowers from becoming “upside down” on their mortgages too quickly.

This is not a one time loan, it is a secured line of credit. This means that it operates like a credit card, allowing you to borrow, repay, borrow, etc. You’ll be able to get the money you need when you need it and repay it when you can. This type of financing is best used for big ticket purchases and one off large payments (like a debt payment), but you’ll want to be certain that you’re not losing more money than you’re paying off (e.g. paying off debt at 20% interest with a secured line of credit that has a 30% interest rate).

Can You Get a Secured Line of Credit?

Everyone is different, and there is really no way to tell if you can get a secured line of credit unless you come in and let us walk you through the process. We’ll help you fill out the paperwork, we’ll go over your credit and then we’ll help you find different lenders to see what is out there for you. Interest rates right now are the lowest they’ve been in decades, so you’ll want to make sure that you can get in on this golden age of mortgages before it’s all over.

If you have really bad credit, the good news is that you’re in the same boat as someone with poor to middling credit. You will need to put up part of your home to get this kind of secured line of credit, so let us help pair you with a great lender who will give you a fair deal today!

Also, visit our home equity line of credit page today to learn more! http://www.homebasemortgages.ca/home-equity-loans/line-of-credit/

Are There Disadvantages to a Secured Line of Credit?

secured lines of credit in TorontoThere can be many disadvantages to a secured line of credit, but most of these can be sidestepped with the right Toronto mortgage broker (like us!) Most people get into a bad situation with any type of credit lines because they don’t understand the terms of the agreement that they’ve entered into. Here we’re going to talk about things you need to look out for before signing up for a secured line of credit and how they work. Let’s get started!

What is a Secured Line of Credit?

The “secured” comes from collateral. If you don’t pay your credit card bill, you’ll wind up with negative marks on your credit. Everyone has had this happen to them, don’t feel bad! But when you don’t pay a secured line of credit off, you can wind up losing whatever you put up to secure the debt. In this case (at least when we’re talking about it here) the collateral will be your home. You don’t want to lose your home because you got a bad secured line of credit! Talk with one of our Toronto mortgage brokers before you sign on for one of these.

What are the Advantages of a Secured Line of Credit?

While these can be risky if you try to get one on your own without understanding them, they can be fantastic when done right! A secured line of credit is something known as “revolving credit” which means it works a lot like a credit card. You’ll borrow up to 70% of the equity in your home at any given time, but you can pay back and borrow back as often as you want. Depending on what kind of credit line you get, you’re going to want to think about what you’re going to be using it for before you get one.

What can a Secured Line of Credit be Used For?

They can be used for virtually everything, but it’s good to stick to a one time big purchase at the beginning or using it to plan for your retirement (like in the case of a Canadian reverse mortgage for example). Just because you’ve been granted x amount of money doesn’t mean you have to borrow it all at once, and you should always be careful about what you’re spending your money on! A mortgage broker can really help you decide whether a Canadian secured line of credit is right for you or if you should think of a more conventional type of financing like a second mortgage instead.

Secured lines of credit can help get you the money you need out of your house when you need them… but not all mortgage lenders are created equal. We’ll help you find that magic fit that will help you get the money you need and make sure you can pay it back in a reasonable amount of time. The best thing about mortgage brokers is that we work for you and not for the bank! Put us to work for you today.

Putting a Home Equity Line of Credit to Work for You

helocPutting a home equity line of credit to work for you means knowing exactly what you’re going to use it for. Here we’re going to talk about the most popular uses like:

  • Paying off your Debts: Many creditors will take lump sum payment deals, saving you from paying thousands of dollars in interest
  • Making Big Ticket Purchases: If you want to buy an expensive item, you’ll be able to with a home equity line of credit; these also help if you’re trying to pay off something big like university tuition too
  • Remodelling Your Home: If you’re going to remodel and reinvest in your home, a home equity line of credit can help! You can use it to pay off contractors, buy materials and everything else. These are a great way to spend your line of credit as you’ll be able to increase the value of your home.

There are many other things that you can use a home equity line of credit for, especially for getting money for retirement (this is often known as a reverse mortgage). You’ll want to speak with one of our Toronto mortgage brokers before you decide on anything.

What is a Home Equity Line of Credit?

Home equity lines of credit are not like home equity loans; a line of credit can be borrowed and repaid again and again. Think of it as something like a credit card, but you fund it with the equity in your home. You’re going to want to make sure that you’re getting the best terms and interest rate before you choose this kind of credit for your home. This is why it’s so important to speak with a Toronto mortgage broker before you decide on any type of financing. We’ll be able to put your home’s equity to work for you so you can make the most profit by spending the least amount of money.

How to Get a Home Equity Line of Credit?

If you want to know how to get a home equity line of cred it you won’t have to go far! When you speak with one of our Toronto mortgage brokers you’ll get all the help you need to get a home equity line of credit. We’ll help you fill out the application and we’ll help you spot any errors on the forms. From there we’ll help you determine your credit worthiness and understand how much you can expect to get.

From here we’ll submit your application so you can get the best loan possible. Don’t let bad credit get in the way of getting a great loan. Let us help you find the right kind of lender! We’ll make sure that you get the right loan at the right rate so that you can make the most of your home equity line of credit. We can suggest steps you can take to get the most money for your home. 

Should You Really Get a Home Equity Line Of Credit?

With interest rates at such lows, you might think that now is the right time for a home equity line of credit – but don’t act just yet, speak with one of our Toronto mortgage brokers and see what we can do for you! Sometimes a home equity loan, or second mortgage, is a much better option for people that need to extract equity from their homes. Whatever you do, always shop around! We’ll help you look at different lenders, different interest rates and different forms of financing so you’ll always be able to make the most of your mortgage.

What is a Home Equity Line of Credit?

Home equity lines of credit are like a credit card, but instead of pulling money out of thin air, it goes off of how much equity you have in your home. So if you have 90% equity you will be able to borrow against that to remodel your home, start a business or whatever else you see fit. It’s important to note however that you can easily end up in a world of hurt if it’s done wrong – so talk to one of our Canada mortgage brokers today and find out how you can save.

What is a Home Equity Loan?

An alternative to a HELOC is a home equity loan, or a second mortgage. This allows you to pull equity out of your home in a lump sum to do whatever you need to do with it. You’ll be able to spend the money on the things that matter most to you, but again you’ll want to be very careful about how you invest your equity. After all, you really only get one shot to get everything right, and if you don’t do it right the first time you probably won’t get another chance to make it right. Be careful about who you deal with, speak with one of our Canada mortgage brokers to know if this is the best choice for you.

Which One is Right for You?

Do you need to be able to tap in now or in the future, only when you need to? Do you need one large lump sum to handle your business? Knowing what your needs are will help you make the most of your home equity line of credit and to know if this is the best choice for you. Working with one of our Toronto mortgage brokers will help you know what your options are and which one will best suit your needs.

Should You Borrow Against Your Home?

You will want to make sure you have much equity as you can available before you borrow. Having less than a 1/3rd of your home still under mortgage or completely paid off is the idea situation, but again we can help you figure out if now is the time to borrow. Call us today and see what we can do for you!

How Thieves are Using Home Equity Lines of Credit

One of the latest and saddest identity theft trends in the last couple years are identity thieves using home equity lines of credit to tap the money right out of your home – and you may not even know about it. It’s better you tap into it before someone else does! Here we’re going to talk about how the scam works and what you can do to protect yourself against identity theft. While Canadian mortgages have a lot of protections there are still some cracks in the system where these people can still get through.

What is a Home Equity Line of Credit?

A HELOC is a line of credit fueled by the equity in your home. Unlike a second mortgage or home equity loan, you can use it like a credit card and borrow against your equity when you need to. You won’t be trapped with a lump sum that you have to spend right away, but it’s important to really understand how they work before you take one out.

How Do They Work?

It’s a line of credit, not a loan, so you can borrow and repay as much as you need for a set amount of time. You’re going to need to know how to keep the credit line open on your home so you can use it for the future. You don’t want to blow your equity on things that don’t matter, but there are many great ways to get a return like investing in home improvements. Since most people don’t think of HELOCs, thieves are able to get one, tap into it and drain your home before you even know what’s happened.

How Do Thieves Steal Equity?

If you’re a thief and you don’t want to work hard, what are you going to do? The best way to steal is when no one’s looking – when was the last time you looked at your equity, especially when your home was completely paid off? It’s the perfect scam. The banks are always eager to do a HELOC on a home that’s been paid in full and you won’t know what happens until the debts come due. This is why it’s so important to keep on top of your credit report and to check for new lines of credit being opened in your name every couple months.

What Can You Do if This Happens to You?

If someone else has opened a home equity loan on your home, you need to report it to the bank right away. When a merchant completes a fraudulent transaction they’re the one that pays, not you. The faster you work with them the better they’ll be able to respond to equity theft. Most homeowners don’t know until it’s too late to do anything, so it’s always important to keep on top of your credit report.

If you’re interested in a home equity line of credit but don’t want to pay an arm and a leg, apply for a home equity line of credit today.