As the owner of the property, you know that you slowly regain ownership of the property as you pay off your primary mortgage. As slow as the process is, over time you will have all the equity resulting in you having complete ownership of the property. Having said that, if you want to take care of some home renovations, and in need of some urgent cash, you can either take a second mortgage with a repayment period or use the equity of your home to open a home equity line of credit which comes with flexible payment options as well as a lower interest rate. Want to know more? Contact our mortgage brokers at Mortgage Power today to find out more information. We offer our services to clients throughout Mississauga.
As you already know, in a vaughan home equity line of credit, you are securing your loan by keeping your property as collateral. As you pay back the loan, you regain the equity percentage. Unlike a traditional loan, there is no fixed repayment period and you can pay at any time you want and then withdraw again. This makes it an ideal alternative for credit cards which come with a high-interest rate. HELOC accounts come with a comparably low-interest rate.
You would be glad to know that you can access up to 65% of the market value of your property when you have 80% equity on the whole. That’s a fair amount of cash that you can use for anything you want, no questions asked. If you have any queries, speak with our team members today. We have to knowledge to resolve any query you may have without any hassle. Our services are available to clients across Vaughan and Woodbridge.
Looking to apply for a home equity line of credit? Look no further than Mortgage Power in Mississauga. Give us a call today to schedule a consultation or to discuss your specific requirements. Our expert mortgage brokers will be more than happy to help you.
Is a home equity line of credit tax-deductible?
If you are spending the amount on home repairs and renovations that you can claim the HELOC to be tax-deductible. You must however mention build, buy or improve in the paperwork when you are filing for your taxes. However, the interest may be tax-deductible.
What’s the difference between a HELOC and a home equity loan?
A home equity line of credit (HELOC) is borrowed against your home’s equity, whereas a home improvement loan does not use your home as collateral. A home equity loan looks at your credit score, earnings etc.
What should be ones’ credit score to qualify for HELOC?
An individual must have a credit score of 620 to qualify for HELOC.