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!