When it comes to making the most of your equity, a home equity loan (also known as a second mortgage) and home equity lines of credit can really help. You’ll want to be very selective about which lenders you work with, choose the right Toronto mortgage broker (us!) and make sure that the terms you’re getting are the best possible. After all, you’ve worked for years to build equity in your home, you don’t want to lose it overnight just because you didn’t know any better right?
What is a Home Equity Loan?
A home equity loan is a second mortgage – it allows you to draw on all that equity you’ve been saving up for all these years to fund all kinds of projects. You can remodel your home, you can put your kids in university or you can put it towards a new home in lieu of a bridge loan; whatever you want to do with it, always make sure it’s a wise investment. Once that equity is gone it can be extremely hard to get back, especially if you don’t get the best home equity loan available. That’s where we come in though! As Toronto mortgage brokers, we’ll scour the lists of local and national lenders to find you the lowest monthly payments and interest rates.
What is a Home Equity Line of Credit?
A home equity line of credit is different from a second mortgage because it is more like a bank account or credit card that you can draw on as time goes by. You won’t get one large lump sum that you have to spend right away. Hold onto your line for a rainy day and then use your equity when you have to, not before. It gives you more control over your spending than a second mortgage, and can be used for both big and small expenses. Many people use these to fund a new business or their retirement like a reverse mortgage.
Which One is Right for You?
It can be hard to figure out which one is right for you; after all, everyone is different and you really can’t just read an article online and figure out your financial future, right? You’ll want to talk to someone, one of our Canada mortgage brokers, one that can help you figure out how much you can expect to pay and how much you can expect to get from your equity.
You’ve worked hard for years to build up the equity in your home, you shouldn’t just barter it away without a fight. The market is in a great place right now, and lenders really want your business. Make them fight for it, make them give you the best deal. If you don’t know how, that’s where we come in! We’ll work with you to help you find the best terms for your mortgage. You don’t have to do it alone, you’ve got a friend in the mortgage business.
Also, visit our home equity line of credit page today to learn more! http://www.homebasemortgages.ca/home-equity-loans/