Equity Loans Available To You:

Home Equity Mortgages (also known as second mortgages) are secured by the equity that you have in your property.  An equity loan or home line of credit (HELOC) through MortgageApprovalHelp.ca can offer you a lower interest rate as compared to other types of loans on the market.

Our partners offer a wide range of equity loan options to meet your unique needs:

 

Fixed Rate:

Provides a secure interest rate that stays the same for the entire length of your equity mortgage term.

What is it? A fixed-rate equity loan / second is a fully amortizing loan where your interest rate remains the same through the term, as opposed to variable rate equity loans where your interest rate may “float” (based on economic conditions).

Who is it for? Ideal when you need a specific amount for a one-time purpose, such as home improvement or debt consolidation and you are more comfortable with the stability and security of paying a fixed amount every month, a fixed rate equity mortgage may be right for you.

Variable Rate:

A favourable choice for many past clients. The past 30 years indicate a variable rate equity loan is a better loan option than a fixed rate by more than 80% of the time.

What is it? A variable-rate home equity loan / second interest rate may periodically adjust based on prime lending rate. This adjustment can affect the cost of borrowing (increase or decrease) on your loan. Long-term, variable rates have proven to be the least expensive.

Home Line of Credit (HELOC):

Home equity lines of credit are flexible loans and help you make the most of the equity in your home.

What is It? With a home line of credit, you only borrow what you need (up to the credit limit) and pay the interest only during the ‘draw’ period the lender sets, typically 5-15 years. Once the draw period ends and you enter the ‘repayment’ period you then begin paying the principal and interest back.

Some people choose to refinance it all into one mortgage payment, depending on the lender’s guidelines. A thought to remember about home equity lines of credit is that the interest rate can fluctuate during the life of the HELOC.

Who is it for? Ideal when you want the option to have quick access to the equity in your home with flexible repayment options and are comfortable with changing rates.

Refinance Loans:

Our lending partners offer refinance loans with as little as 20% equity, straightforward terms and conditions. Read more

 

Short Term Second Equity Loan:

Take advantage of current low rates, and protect yourself from future rate jumps by splitting your mortgage into short and long term rates.

What is It? Maintain your current long term mortgage and rate while taking out your equity (up to 80% LTV) as a short term second mortgage with an even lower interest rate. Short term equity loans are usually 6 months to 5 years and rates depend on the term chosen.

Who is it for? If you want to borrow the equity in your home and pay it back fast with a low rate then a short term equity loan is for you.

75% Home Equity Loan:

Take out 75% of the value of your home minus the balance owing, leaving 25% of the value in equity.

What is it? This home equity loan allows you to borrow up to 75% LTV in equity. For example, if you owe $50,000 on a $100,000 mortgage, you can take $25,000 of the equity out in cash at competitive rates.

Who is it for? This home equity loan is perfect for those who want to take out some of the equity in their home but not all, leaving 25% equity as peace of mind.

Up To 25 Year Amortization:

A longer amortization offers the longest amount of time to completely pay off your home equity loan. The main benefit is a smaller monthly equity payment than with a shorter amortization.

Ideal if your goal is a lower monthly payment. A 25 year home equity loan can be what you are looking for. Take longer to payoff your equity loan and bring down your monthly payment, we can help you decide if a 25 year amortization loan makes sense for you.

Interest Only Home Equity Loans or Line of Credit

When you want lower payments up front and a fixed rate for the life of the loan which are normally for shorter periods. Or an equity line of credit with low rates and pay only the interest on the amount you draw.

What is it? An interest-only equity loan is a loan set for a term, wherein the borrower pays only the interest on the principal balance, but with the principal balance unchanged. At the end of the term the borrower may continue the interest-only equity loan, pay the principal, or (with some lenders) convert the loan to a principal and interest payment (or amortized) loan at his/her option.
As an interest only equity line of credit you may draw on as you need it with the same repayment options as an interest only loan. Payment amounts will change depending on how much you draw, lenders.

Who is it for? If your goal is a smaller payment with set rate until the term is up or to pay only on what you draw, an interest only equity loan or line of credit may be right for you.

Business For Self (BFS):

Equity loan options for self-employed borrowers who can explain and prove capacity to repay without traditional GDS/TDS requirements.

What is it? An equity loan designed for those who are self employed or a business owner. Instead of T4’s our lenders look at your credit history and 3 year’s financial statements, notice of assessments and/or tax returns… or combination of. Without having to fit into traditional GDS/TDS guidelines, self employed borrowers have a better option when taking out their equity.

Who is it for? For business owners or self employed individuals who are able to present financial history by either 3 years notice of assessments, tax returns and/or financial statements. Request your free quote online, our partners can help you decide if this is the option for you. If you are unable to prove income and are self employed, a No Income Verification Equity Loan might be better for you.

Open and Closed Equity Loans

An open equity loan is designed for those who are looking to payoff their mortgage sooner without penalties with a low rate, within lender`s guidelines. Opposite an open equity loan is a closed equity loan, which is designed for those who are happy to pay a set payment over the term of the loan and in turn receive an even lower rate then an open equity loan.

Not sure which equity option is right for you? Request your confidential free quote online today. 

How We Help:

An Equity Loan Through MortgageApprovalHelp.ca Can Help You:

 

Move To A Lower Rate

It’s still an excellent time for you to change the term of your current loan and move to a lower interest rate. Our partners can help you transfer your current mortgage to a shorter term and lower interest rate, or blend two mortgages together into one lower rate mortgage and save you money. Today’s equity and line of credit rates in Ontario are highly competitive. We help you put less money toward interest and keep more of it in your pocket.

Consolidate High Interest Debt

Avoid the negative financial bounce that high interest credit cards can cause. The added interest expense could begin to play havoc on your monthly budget. A lower interest cash out home equity loan can help pay down a pocketful of credit cards & other bills, and improve your monthly cash flow. Make one low monthly payment instead of several, and pay less overall each month. Tell me more

Complete Home Renovations

What kind of shape is your home in? More and more homeowners are opting to renovate their existing home instead of purchasing another. Whether you need new siding, an extra bedroom, or even a new heating system, a home equity loan can be a sensible solution. By increasing your monthly cash flow, you’ll have money to make repairs or home improvements and increase the value of your home.

Fund University or College Programs

If your job disappears, how well positioned are you to quickly land on your feet and find a new job? Taking a class – or even earning a degree – can help offset the sting that a layoff could bring, especially if you’re able to secure a better-paying job. A home equity loan can put the cash you’ll need to pursue a new career into your hands.

Pay Unexpected Medical Expenses

Life is as unpredictable as the economy, and sometimes unforeseen medical needs crop up – from emergency care to specialized treatments. If your insurance has limitations that can put you at financial risk, a home equity loan may offer a quick solution.

Increase Rental Income

Leverage the equity in your rental property to buy an additional property and expand your investment portfolio. By increasing your monthly cash flow, you’ll have more money to make necessary repairs or improvements and increase the value of your investment property.

Unsure? We are here to help. Request your free quote today, or call us toll free.

A Closer Look At Equity Mortgages

Home Equity Mortgages (also known as second mortgages) are secured by the equity that you have in your property. Your first (original) mortgage probably has a term of 25 years, while some equity loans have a term of 5 to 10 years.

There are many reasons to consider a home equity loan, but some of the more common are debt consolidation, home improvements, and paying for school tuition.

In many cases, home equity loan products can offer you a lower interest rate as compared to other types of loans on the market. When you request a quote, you may see offers for both home equity mortgages and secured lines of credit to meet your equity needs.

For over 5 years we’ve helped people all across Ontario achieve their goals when applying for a home equity loan. We’d like the opportunity to do the same for you too.