Home Equity Loan Brampton

If you are a homeowner living in Brampton, you’ve got a number of options available to you when it comes to borrowing money. As home values in Brampton have gone up considerably, one popular way to borrow is through a home equity loan which is also sometimes called a second mortgage.

What is a home equity loan?

A home equity loan takes advantage of the equity you have been building up over the years that you’ve lived in your home. You gain home equity both as you pay down your mortgage and as home values rise. If your home is worth $500,000 and you still owe $200,000 on it, then you have $300,000 in home equity.

Since most lenders will let you borrow up to 80% of your home equity, that means that you would be able to borrow up to $240,000 with a home equity loan in this scenario.

A home equity loan works in much the same way that your first mortgage does. Once you borrow the money, you make regular payments on a monthly or bi-weekly basis until the loan is either paid off or until it is time to renew it with your lender. The interest tends to be a little higher than current mortgage rates, but it is still much lower than other types of loans.

Why should you choose a Home Equity Loan in Brampton?

There are many reasons why Brampton homeowners choose to get home equity loans. They are a convenient and low-cost way to borrow large sums of money, making them ideal tools for:

  • Debt consolidation

    consolidate all of your higher interest debt into one easy low-interest debt payment. This makes it possible to lower your overall monthly payments, pay off your debt faster, or both.

  • Finance a home renovation

    home renovations can be costly but they can add value to your home. Why not use the equity that is already in your home to fiancé them!

  • Other common uses include using a home equity loan as start-capital for a business, funding a child’s education, or paying for emergency expenses. Truly however, the cash from a home equity loan may be used for any purpose that you choose.

How to get the best rates for Home Equity Loans

Having good credit will be necessary to get the best rates available on a home equity loan, but even if your credit is less than perfect, you can still get a good rate if you work with a professional mortgage broker.

Mortgage brokers have contacts with a wide range of lenders so they can shop around and compare rates on your behalf to get you the best interest rate for your situation. They even have contacts with lenders who you wouldn’t be able to access on your own.

How to get Home Equity Loan even with bad credit?

Having bad credit can make it more difficult to get a home equity loan which is another reason why it is so important to work with a mortgage broker. There are many types of lenders available and your best bet if you have bad credit is to get a home equity loan from an alternative lender or private lender that specializes in helping people with bad credit.

Your mortgage broker will have access to several of these kinds of lenders and by working with a mortgage broker, you won’t have to worry about doing business with a lender that isn’t reputable

Advantages of Using a Mortgage Broker for Home Equity Loan

While we have already touched on some of the advantages of working with a mortgage broker to obtain a home equity loan, there are still several other reasons why you should work with a broker and not try to do it on your own.

These reasons include:

  • Your broker will help you decide if a home equity loan is really the right choice for you. (Home equity loans can be a great tool, but there are also other financial products such as mortgage refinancing and home equity lines of credit which may be a better fit depending on your situation)
  • Your broker will work on your behalf to help you get the best rates and terms possible for your home equity loan.
  • Your broker will help you with the entire application process including guiding you on the necessary documentation and home appraisal process if it is required
  • Your broker will answer any questions you may have about your home equity loan so you can be confident that you are making the right decision.

Contact us today!

Are you a Brampton homeowner who is interested in learning more about home equity loans to determine whether this is the right financial move for you? If so, give us a call today to arrange a consultation with one of our brokers.