How to Earn Aeroplan Points
Aeroplan is a well-known travel rewards program run by Air Canada. The Aeroplan program boasts millions of members and is considered Canada’s top trav...
Compare and Save With Loans Canada
Ontario is one of Canada’s most popular provinces to live in and a lot of its citizens need mortgages to pay for their houses. Housing prices have been on the gradual rise in Ontario over the past few years and a typical mortgage can cost hundreds of thousands of dollars in principal, interest, and other fees. Not to mention all the home-related expenses that every homeowner must deal with. However, there is a silver lining as you go about paying down your Ontario mortgage, you can use the equity you’ve built up to take out a HELOC.
Your home equity refers to how valuable your house is on the real estate market, as well as how much of your mortgage you’ve managed to pay off. In order to access it, you’ll need to have your property appraised to determine its market value and must have at least 20% equity to receive approval. You can then apply for one of two types of credit product, known as a home equity loan and a HELOC.
Wondering how you can access your home equity in 2018? Find out here.
Before we move on to a discussion of those two products, it helps to gain a basic understanding of why they are referred to as “second” mortgages. This idea can be confusing because neither product really qualifies as a mortgage in the typical sense of the word. Whereas your primary mortgage sits in first claim position while you’re in the process of amortizing it, home equity loans and HELOCs in Ontario initially come in the second position and can be acquired through a secondary lender if you wish.
Interest rates for second mortgages are often higher than first mortgages because the secondary lender is taking on a heavier risk by approving a borrower who already has one mortgage on their property. However, you can have your home equity loan or line of credit moved into the first position once your primary mortgage is fully paid, which may help you secure a more reasonable interest rate when the time comes.
Ever wonder how much it costs to buy a house outside your city? Check out this infographic.
Try clicking here if you’re thinking about applying for an installment loan in Ontario.
Interested in applying for a fixed or variable rate mortgage? Look here to know how.
Click here to see how your payment history affects your credit score.
Searching for the right HELOC in Ontario can be a tough and time-consuming task, especially when you’re already in the middle of your primary mortgage. Loans Canada can help match you with the second mortgage lender you need, fill out an application today.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.
Aeroplan is a well-known travel rewards program run by Air Canada. The Aeroplan program boasts millions of members and is considered Canada’s top trav...
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 fee, deposit or insurance payments on a loan.