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HELOC Surrey 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

With so many loan options available, how do you determine which one is best?

Like the different loan products out there, every consumer also has very different financial mean that must be met. As such, one loan product might be better suited over another.

The idea is to get familiar with what’s available before making that decision, and one unique loan type is what’s known as a HELOC.

If you’re currently a homeowner in Surrey, a HELOC might be a viable loan option for you. But what exactly is a HELOC, and how can it help you get access to the funds you need to cover some of life’s biggest expenses?

For more information about borrowing with your home equity, check this out.

What is a HELOC Surrey and How Does it Work?

An acronym for a “home equity line of credit,” a HELOC is a  type of revolving credit that’s similar to a credit card. But rather than borrowing against a credit limit issued by a creditor, you would be accessing credit against the equity in your home.

Equity simply refers to the value of your home, less any loan amount that you still owe on your mortgage. If you have equity built up in your home, you may be eligible for a HELOC. More specifically, at least 20% in equity will be required, depending on the lender and your financial and credit profile.

To learn even more about building home equity in Canada, click here.

These types of credit lines work similar to a credit card in that you are given access to an account with a certain limit that you can borrow against. You can borrow as much or as little as required, as long as that amount is eventually repaid before its maturity date. Or else it will be rolled over into an installment loan.

Interest is only charged on the amount withdrawn rather than the entire credit limit, similar to a credit card. The money can be withdrawn repeatedly as the need arises.

HELOCs are often better alternatives to traditional loans in which a lump sum is borrowed and is repaid in installments. In this case, the entire loan amount would be charged interest until it is fully repaid.

If you don’t need a huge amount of money up front but are rather looking for something that provides you with quick access to cash from time to time, then a HELOC in Surrey might be a great option for you.

A HELOC would be considered in second position behind the first mortgage on your home. That means if you default on your mortgage at some point in the future, the lender holding the first mortgage will be repaid first with any proceeds of the sale of the home after repossession. Any lender holding second (or even third) position will then be paid back with whatever loan funds remain.

Cost of Buying a House in CanadaWant to know how much it costs to buy a house in your city? Check out this infographic.

How Do HELOCs and Home Equity Loans Differ From One Another?

Sometimes HELOCs and home equity loans are used interchangeably, especially when they’re both referred to as second mortgages. Yet while they both involve borrowing against the equity in your home, they are different. It would be more accurate to only refer to home equity loans as second mortgages, and not HELOCs.

So, how do these two loans types differ from each other?

As already, mentioned, HELOCs work more like credit cards in that they’re revolving credit. Instead, home equity loans work more like the typical loan in which a lump sum of money is taken out and paid back in installments over a specific amount of time, after which the entire loan amount will need to be repaid in full, plus interest.

HELOCs, on the other hand, can be withdrawn and repaid at will, as long as all funds are repaid eventually before the loan’s maturity date. Once the HELOC matures, the withdrawal period of the loan will expire and the full loan balance will then convert to an installment loan if not fully repaid.

What Are Some Common Uses For HELOCs?

The funds obtained from a HELOC can be applied to virtually anything, much like any other type of loan. That said, there are certain types of expenses that are more common among borrowers, including the following:

  • Home renovations
  • Car repairs
  • Medical emergencies
  • College or university tuition
  • Starting a business
  • Large family vacations
  • Debt consolidation

HELOCs are particularly useful for those who believe they’ll need access to extra funds from time to time. Rather than having to go through the process of applying for a loan every time, the funds will be readily available when needed.

Learn How to Tackle DebtStruggling with debt problems? Check out this infographic to learn how to create a repayment plan.

Is a HELOC Surrey Right For You?

There are many situations where a HELOC makes sense. It’s always important to evaluate your financial needs before you decide to take out a loan and before choosing which loan type to apply for.

Further, it’s a good idea to evaluate what the borrowed funds will be used for. While some expenses might be frivolous, others might be legitimate.

For instance, if you’re going to use the money to renovate your home, this can potentially add value to your home. As such, borrowing funds in the form of a HELOC would make sense. Or if there’s a dire medical emergency that needs to be covered, then the money would be well spent.

But if you’re going to take out the funds to pay for an unnecessary expense that will just put you further into debt, perhaps a HELOC is not the right option.

Looking to Apply for a HELOC Surrey?

If you’ve established that reason for borrowing money is valid and you believe that you are financially capable of repaying the money before the maturity date, then a HELOC in Surrey could be a great financial option for you. To find the best HELOC loan product for you, get in touch with Loans Canada today!


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.

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Posted by
Lisa has been working as a freelance writer for more than a decade, creating unique content that helps to educate Canadian consumers. She specializes in personal finance, mortgages, and real estate. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. She enjoys sharing her knowledge and experience in real estate and personal finance with others. In her spare time, Lisa enjoys trying funky new recipes, spendin...

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