Loans Canada Services Are 100% Free. Disclaimer

HELOC British Columbia 2019

Compare the best lenders in this region:
ProviderRating
Climb -
4 / 5
Pylo Finance 4 / 5
Fresh Start Finance 4 / 5
Marble Finance 5 / 5
Money Mart 4 / 5
Private Loan Shop 5 / 5
Progressa 3 / 5
My Canada Payday 5 / 5
Mr. Payday 4 / 5
Money Provider 5 / 5
Loan Express 3 / 5
Loan Away 4 / 5
Lendful 3 / 5
LendDirect 5 / 5
Health Smart Financial Services -
GoDay 4 / 5
iCash 5 / 5
Focus Financial Inc. 2 / 5
FlexFi 5 / 5
Eastern Loans 5 / 5
DMO Credit 5 / 5
Capital Cash 2 / 5
Credit 700 2 / 5
Credit Club 5 / 5
Credit2Go 3 / 5
Ledn 5 / 5
Amber Financial 5 / 5
Affirm Financial 5 / 5
310 Loan 2 / 5
Newstart Canada 4 / 5
Ferratum 5 / 5
SkyCap Financial 4 / 5
Fairstone 2 / 5
Lending Mate 4 / 5
Consumer Capital Canada 4 / 5
Lamina 3 / 5
Loans SOS -
514 Loans 5 / 5
CashCo 5 / 5
UrLoan 5 / 5
Loan Me Now 4 / 5
Captain Cash 4 / 5
BC Loans 4 / 5
Urgent Loans 4 / 5
Easy Financial 3 / 5
Mogo Finance 4 / 5
Cash Money 5 / 5
Borrowell 5 / 5
Magical Credit 5 / 5
Speedy Cash 5 / 5
ProviderRating
CLE Capital -
Canada Equipment Loan -
SharpShooter Funding 5 / 5
First West Credit Union 5 / 5
Meridian Credit Union 5 / 5
Laurentian Bank of Canada 5 / 5
HSBC Bank Canada 5 / 5
National Bank 5 / 5
Canadian Imperial Bank of Commerce (CIBC) 5 / 5
Scotiabank 3 / 5
Bank of Montreal (BMO) 3 / 5
Royal Bank of Canada (RBC) 5 / 5
CWB National Leasing 5 / 5
Money in Motion 5 / 5
Lease Link 5 / 5
FundThrough 5 / 5
Econolease Financial Services Inc. 5 / 5
Easylease Corp 5 / 5
Dynamic Capital 5 / 5
Capify 5 / 5
Canadian Equipment Finance 5 / 5
Capital Key 5 / 5
Cashbloom 5 / 5
BFS Captial 5 / 5
BDC 2 / 5
Baron Finance 5 / 5
B2B Bank 5 / 5
AOne Financial Solutions 5 / 5
Borrowell 5 / 5
iCapital 5 / 5
Lendified -
IOU Financial 5 / 5
Company Capital 5 / 5
OnDeck 5 / 5
Evolocity 5 / 5
Lending Loop 5 / 5
Thinking Capital 5 / 5
ProviderRating
Capital Trust Financial -
Canadian Truck Loan -
Canada Car Loans -
Car Loans Canada -
Car Creditex -
Auto Capital Canada 5 / 5
Carfinco 5 / 5
Canada Drives 5 / 5
Prefera Finance 5 / 5
Approve Canada 5 / 5
2nd Chance Automotive 5 / 5
Newstart Canada 4 / 5
SkyCap Financial 4 / 5
Splash Auto Finance by Rifco 5 / 5
Carloans411 5 / 5
AutoArriba 5 / 5
ProviderRating
Newstart Canada 4 / 5
BHM Financial 5 / 5
ProviderRating
CMLS Financials -
CHIP Reverse Mortgage -
CanWise -
Centum 5 / 5
Broker Financial Group Inc. 5 / 5
Bridgewater Bank 5 / 5
Alpine Credits 5 / 5

If you’re a homeowner in British Columbia, your mortgage can be quite pricey as real estate in the province becomes more and more valuable. However, as you pay down your mortgage over the years and your own property potentially gains more value, you’ll also be building equity. Your home equity can then be used in various ways, including:

For more information about accessing your home equity in 2018, click here.

What is a HELOC?

A home equity line of credit is a form of “second mortgage”. This means that you can actually hold a primary mortgage with one lender (bank, credit union, etc.) while taking out a HELOC through an alternate source. So, while it’s not a literal second mortgage, a HELOC will fall under a secondary claim position with this other lender, since there is another mortgage on the property at the time of application. Some HELOCs come with higher interest rates than other credit products, especially if you’re getting yours through a secondary source and it’s assumed that the credit line is in the second position, making it riskier for the lender. Certain HELOCs,  however, do qualify in the primary position if your first mortgage is already paid in full.

Once you’ve managed to tap into your home equity, you can use your HELOC as a revolving credit line, which you can dip into as you need, then pay back via a monthly balance, along with the option of a minimum payment, similar to a credit card.  

Cost of Buying a House in CanadaWant to know how must it costs to purchase a house in your city? Click here

What’s the Difference Between a Home Equity Loan and a HELOC?

If you’re trying to make the best use of your British Columbia home equity, it can become confusing when you end up faced with so many options. However, home equity loans and HELOCs are two of the most common methods. These products are similar in some ways. For instance, both products:

  • Are often referred to as “second mortgages”
  • Involve borrowing using your home equity
  • Offer the opportunity for lower interest rates than some traditional loans
  • Can be used to finance almost any cost, including:

However, these two products differ in certain respects, such as:

Home Equity Loans:

  • Are specific lump sums of loan cash, the amounts of which will vary in accordance with how much equity you’ve built
  • Generally come with a fixed interest rate
  • Must be repaid within a certain timeframe through equally divided installments (monthly, bi-monthly, weekly, bi-weekly, etc.)

HELOCS:

  • Come in the form of revolving credit.
  • Are similar to traditional lines of credit, only they are secured against your home. Be careful! This means that if you stop making payments, your home may be seized as collateral.
  • Allow you to pay a slightly higher but often adjustable interest rate, only on the amount you withdraw, not on the total loan balance (as it would be with a home equity loan).
  • Sometimes come with the option of a fixed interest rate (ask your lender).

Scenarios When a HELOC is the Better Choice

While it’s true that home equity loans and HELOCs in British Columbia can be quite similar, there are situations where one might product outweigh the other. For instance:

Home Equity Loans might be more beneficial when:

  • You’re dealing with a sudden emergency expense that you need to finance immediately but can’t afford to pay back all at once.
  • You’re trying to consolidate a large amount of debt.
  • You want to know exactly how much you’ll pay in installments and interest over the course of your payment schedule.
  • You are comfortable using your home to secure your loan and interest rate.

HELOCs might be more beneficial when:

  • You would rather finance something over time, rather than all at once.
  • You’re trying to finance ongoing renovations, additions, or general maintenance to your home, which might be easier if you can tap into a line of credit as needed.
  • You prefer the option of paying a variable interest rate on the amount you’ve withdrawn, which can be cheaper if interest rates decrease while you’re in the process of mortgaging.
  • When you’re not trying to finance unnecessary purchases, like consumer goods.

Shopping for low-interest rates? Consider this first.

Looking for HELOC in British Columbia?

Wondering what’s the best use of your British Columbia home equity? That’s easy! It’s by getting a HELOC through loans Canada, then using your line of credit for whatever expenses you see fit. Apply with us today for a better financial life tomorrow!

FAQs

What happens if I miss a mortgage payment?

  • Missing a mortgage payment will affect your finances in two ways. A missed payment will be reported to the credit bureaus and negatively impact your credit score. And your lender could potentially charge you a late fee. If you know you won’t be able to make a loan payment on time, make sure you speak with your lender.

What is home equity?

  • Home equity is the percentage of your home that you actually own. As you pay down your mortgage (or if the market value of your home increased), your home equity or the percentage of your home that you own goes up. Home equity is valuable because you can use it as collateral to borrow against.

What credit score do I need to qualify for a mortgage?

  • Generally speaking, in Canada most banks and traditional lenders will require a minimum credit score that falls somewhere between 620 and 680.

How do I find out how much equity is in my home?

  • In order to gain access to your home equity via a home equity loan, HELOC, second mortgage, etc. a professional appraisal must be performed, which will determine the value of your house. But, if you’re interested in having a general idea of the amount of home equity you’ve built up, subtract your remaining mortgage balance from the price you paid for your house.

How useful was this post?

Click on a star to rate it!

Posted by
Bryan completed the Cinema, Video, and Communications program in Dawson College and holds a Bachelor’s Degree in English Literature & Creative Writing from Concordia University. Bryan covers a wide range of topics for Loans Canada, including credit improvement, debt management, and all things related to personal finance. In his spare time, he maintains a passion for editing, writing film and television screenplays, staying fit, and traveling the world in search of the coolest sights our plan...

Services In This Region
From the blog...
Make Sure You Understand These Financial Terms Before Getting a Loan
Posted on November 19, 2019

Make Sure You Understand These Financial Terms Before Getting a Loan

Taking on a loan is a serious financial decision, make sure you understand these terms first as they will help make the process as smooth as possible.

Can I Pay Off My Loan Early?
Posted on October 31, 2019

Can I Pay Off My Loan Early?

Thinking about paying off a loan early to save on interest or to get rid of any debt you have? Loans Canada has all the information and advice you nee... Read More

How Can I Get a Lower Interest Rate on a Loan?
Posted on September 26, 2019

How Can I Get a Lower Interest Rate on a Loan?

From our friends at Fairstone Financial, everything you need to know about how to get a lower interest rate on a loan.

Related Videos
How To Identify A Loan Scam
How Your Credit Score is Calculated
The Ins & Outs of Debt Consolidation
Note:

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster.

Loans Canada and its partners will never ask you for an upfront deposit, upfront fees or upfront insurance payments on a loan. To protect yourself, read more on this topic by visiting our page on loan scams.