If you are the owner of a property then you will already know that as you pay off your primary mortgage, you slowly regain ownership of your property. This process may be slow, however, over time you will have all the equity and thus complete ownership of your property. Now, suppose you want to take care of some renovations and need some urgent cash. In this matter, 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 in Whitby which comes with flexible payment options as well as a lower interest rate. Want to know more? Contact our mortgage brokers at Mortgage Power Canada today. We look forward to hearing from you.
As you already know, in a Whitby 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 Whitby.
You can also make one-time expensive purchases using HELOC, however, it is not advisable. For further details, contact our team of expert mortgage brokers at Mortgage Power Canada.
Our team members are always committed to delivering a high-quality service while being completely transparent with the entire process. We offer a customized contract that meets your financial needs while keeping everything in your budget. Rely on our mortgage brokers, you won’t regret it!
While both may sound the same, they are not. A home equity loan is similar to a traditional loan where you get a lumpsum amount of cash and you have to repay it within a certain period. Contrasting to that, HELOC is a revolving line of credit that you can access at any time you need cash and repay at your convenience. The closing costs are also lower than those of one-time loans. You always get in touch with our mortgage brokers at Mortgage Power Canada for more details. We serve across Whitby.
How much equity of my property can I access?
You can access up to 65% of the market value of equity of your property.
How much should my credit score be to qualify for HELOC?
Your credit score should be a minimum of 620 to qualify for HELOC.
Is HELOC tax-deductible?
You can claim the loan to be tax deductible if you are spending the funds on building repairs and renovations. The phrase “buy, build, or substantially improve” should be mentioned in the paperwork.