Home Equity Loan Mississauga

Homeowners in Mississauga have enjoyed the benefit of rising home values over the last several years. This means that as their home values have been going up and as they have been paying down their mortgages, Mississauga residents have been accumulating large amounts of equity in their homes. For anyone looking to borrow a large amount of cash, borrowing from your home equity can be one of the best ways to do this. And home equity loans can allow you to borrow up to 80% of your home equity.

What is a home equity loan?

Not to be confused with a home equity line of credit, a home equity loan (also known as a second mortgage) is a lump sum loan against the equity in your property. It does not require you to break your first mortgage (as refinancing does) and there is therefore no financial penalty when you get this type loan.

The loan must be repaid on a monthly or bi-weekly basis until it is either paid off or until it is time to renew your agreement with the lender.

Why should you choose a Home Equity Loan in Mississauga?

Home equity loans are a popular way to borrow money in Mississauga for a number of reasons. Because these are secure loans (you are backing them up with collateral), home equity loans tend to be much lower interest than other types of loans. Furthermore, they are a good option when you need to borrow a high amount of money since most lenders will let you borrow up to 80% of your home equity.

Homeowners use these loans for a variety of purposes, from funding a child’s education, to paying for a home renovation. Because they are low interest, they can also be the ideal vehicle for consolidating debt.

When you use a low interest home equity loan to consolidate debt not only does it make it easier for you to pay off your debts more quickly, but you might even be able to lower the total amount that you are paying on debt each month.

How to get the best rates for Home Equity Loans

Although home equity loans have lower interest rates than other types of loans, the exact interest rate that you get can still vary from lender to lender and will be based in part on how good (or bad) your credit rating is.

The best way to ensure that you get the best possible rate for your situation is to work with a qualified mortgage broker. Mortgage brokers work with many different lenders – and some of the lenders that they work with cannot be accessed without the use of a mortgage broker.

Because of their multiple connections, mortgage brokers can compare rates and terms of various lenders in order to help you get the best rate and the loan that is most appropriate and advantageous for you.

How to get Home Equity Loan even with bad credit?

As mentioned, your credit score will be a factor in a lender’s decision as to whether to offer you a home equity loan. But that doesn’t mean that it’s impossible to get one if you have poor credit.

While a poor credit score may prevent you from getting a home equity loan with a traditional lender such as a bank or credit union, there are many alternative and private lenders who actually specialize in helping people with poor credit get the loans that they need.

You mortgage broker can help you find the right lender to obtain a home equity loan with bad credit.

Advantages of Using a Mortgage Broker for Home Equity Loan

We have already covered many of the advantages of working with a mortgage broker in order to get a home equity loan, but they are worth reviewing again

The advantages of working with a mortgage broker include:

  • You will receive expert advice on whether or not a home equity loan is actually the right tool for you. (It may be right for you, but there may be other tools like refinancing or a home equity line of credit that are more appropriate for your specific situation.)
  • Your mortgage broker will use his/her contacts to match you with the right lender to help you get the best terms and interest rate possible for your circumstances.
  • Your mortgage broker will help you get your loan processed quickly and easily. (Incomplete applications and errors can cause your home equity loan to be delayed or even denied – your broker will help ensure you have everything you need before submitting your application).
  • Your mortgage broker will answer any questions you might have about getting a home equity loan to help you feel comfortable with your decision.

Contact us today!

If you live in Mississauga and are interested in learning more about home equity loans, or if you would like to apply for one, contact us today to speak with one of our brokers.