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		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
9	1718582400		$100 to $1500	24%	Next payday	$100 to $1500
100	1709683200		up to $1,250	12%-32%	90 - 150 days	up to $1,250
23	1700524800		$5,000 - $25,000	24.99% - 29.99%	30 or 60	$5,000 - $25,000
21	1700524800		$1,000 - $5,000	46%	9-24	$1,000 - $5,000
15	1695254400		$1250	16.06% (nominal) - 31.99% (effective)	3 - 5	$1250
3	1692748800		Up to $350	0%	Up to 65 days	Up to $350
8	1688083200		$150 - $1,600	10 - 35%	3 - 6	$150 - $1,600
100	1686182400		$300 - $3,000	18% + fees	6	$300 - $3,000
100	1686182400		$300 - $3,000	18% + fees	6	$300 - $3,000
100	1686182400		$300 - $3,000	18% + fees	6	$300 - $3,000
6	1683676800		$15,000	6.7%	Up to 60 months	$15,000
1	1670889600		$1,000 - $15,000	19.9% - 34.9%	-	$1,000 - $15,000
7	1666051200		$250	0%	-	$250
100	1643932800		$500 - $15,000	+18.9% APR	6 - 60	$500 - $15,000
100	1642723200		up to $1,500	-	-	up to $1,500
100	1734612195			29.9% - 46.9% APR	12 - 60
30	1637280000		$5,000 - $50,000	5.75% - 22.99%	Up to 84	$5,000 - $50,000
100	1623369600		Varies	0%	6 or 8 weeks	Varies
2	1620777600		Up to $35,000	9.99% - 46.96%	6 - 60	Up to $35,000
17	1607558400		$500 - $50,000	6.99% - 46.99%	12 - 36	$500 - $50,000
100	1600646400		$1,000-$7,500	12.99% - 29.99%	24 - 60	$1,000-$7,500
100	1598918400		$1,000 - $15,000	-	-	$1,000 - $15,000
100	1598832000		$500 – $15,000	+ 25.99%	9 - 60	$500 – $15,000
100	1595980800		$200 - $1,200	25% - 32%	-	$200 - $1,200
100	1551830400		Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1594684800		$100 - $2,000	0%	-	$100 - $2,000
100	1593561600		-	0+	2 - 60	-
100	1589155200		$2,500	15.65% AIR	13 - 26	$2,500
100	1582243200		-	-	Up to 60	-
100	1581033600		$5,000+	-	Up to 60	$5,000+
100	1580947200		-	-	-	-
100	1580860800		$500 - $5,000	-	12 - 24	$500 - $5,000
100	1580860800		$350 - $1,000	-	2 - 12 weeks	$350 - $1,000
16	1580774400		$1,000 - $25,000	8.99% - 34.99% APR	36 or 60	$1,000 - $25,000
100	1579478400		$100 - $1,500	-	-	$100 - $1,500
100	1579478400		Up to $5,000	29.78% - 44.8%	36 months	Up to $5,000
100	1579219200		$100 - $25,000	+4.9%	-	$100 - $25,000
100	1579219200		-	15% - 19%	-	-
100	1576713600		-	Up to 35%	-	-
18	1576713600		$500 - $100,000	6.99% - 14.99%	12 - 240	$500 - $100,000
100	1575590400		1800- 2900	15.99%	23 - 36	1800- 2900
100	1562198400		$500 - $15,000	15.99 - 39.99%	6 - 60	$500 - $15,000
100	1560124800		Up to $15,000	29.99% - 46.96%	9 - 60	Up to $15,000
19	1552262400		$1,000 - $15,000	29.9% or 46.90%	6 - 60	$1,000 - $15,000
100	1551830400		$100 - $1,000	546% APR	14 days	$100 - $1,000
100	1569974400		$500 - $50,000	15 - 30%	-	$500 - $50,000
100	1551830400		$1,000 - $15,000	19% - 46.95%	6 - 60	$1,000 - $15,000
100	1551398400		Up to $1,500	15% - 19%	14 days	Up to $1,500
100	1551398400		$100 - $1,500	15% - 17%	14 -31 days	$100 - $1,500
100	1551398400		$500 - $1,000	28% - 32%	-	$500 - $1,000
100	1551398400		-	-	14 days	-
18	1546128000		Up to $5,000	19.9% - 45.9% APR	6 - 36	Up to $5,000
100	1551139200		$250 -$1,250	29%	3 - 6	$250 -$1,250
100	1551139200		$5,000 - $35,000	9.9%+	6 - 60	$5,000 - $35,000
15	1551139200		Up to $15,000	29.99% to 46.93% APR	Open-end	Up to $15,000
100	1550534400		$300 - $25,000	7.95%+	36 - 60	$300 - $25,000
100	1550534400		$100 - $1,500	-	14 days	$100 - $1,500
100	1569974400		Up to $1,500	Varies by province	up to 62 days	Up to $1,500
100	1550534400		Up to $1,500	Up to 59% APR	14 days	Up to $1,500
19	1550534400		$2,500 +	-	-	$2,500 +
100	1550534400		$500 - $1,000	28% - 32%	3 -5	$500 - $1,000
100	1550534400		$300 - $1,000	38% APR	3 - 4	$300 - $1,000
100	1549411200		$100 - $1,000	546% APR	14 days	$100 - $1,000
100	1549411200		$1,000 -$15,000	46.93%	12 - 60	$1,000 -$15,000
100	1567555200		$300 - $3,000	18% + fees	6	$300 - $3,000
100	1549238400		$500 - $1,000	28% - 32%	4 - 5	$500 - $1,000
100	1549238400		$100 - $1,500	90% - 390% APR	14 days	$100 - $1,500
100	1549238400		$250 - $1,000	29% APR	3 - 4	$250 - $1,000
20	1548720000		$500 - $1,000,000	7.9%	12	$500 - $1,000,000
100	1548720000		$1,000 - $50,000	4.6% – 49.96%	3 - 60	$1,000 - $50,000
100	1548633600		$300 - $7,500	29.9% - 39.9%	6 - 60	$300 - $7,500
100	1548633600		$50 - $1,500	-	14 days	$50 - $1,500
100	1545955200		Up to $20,000	19% - 49%	36 - 48	Up to $20,000
16	1545264000		$2,000 - $10,000	18.9% - 54.9%	12 - 60	$2,000 - $10,000
5	1545264000		$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1545264000		$500 – $10,000	Starting at 9.90%	12 - 36	$500 – $10,000
2	1543622400		Up to $60,000	19.99% - 39.99%	6 - 120	Up to $60,000
100	1545177600		$2,000 – $10,000	34.9% - 43%	12 - 60	$2,000 – $10,000
10	1545264000		$500 - $12,500	19.99%+	12 - 60	$500 - $12,500
100	1545350400		Up to $1000	30%	3 - 5	Up to $1000
100	1545350400		Up to $5,000	60%	6 - 60	Up to $5,000
100	1545350400		Up to $3,000	22% - 35%	3 - 4	Up to $3,000
100	1545350400		Up to $7,000	-Up to 48.99%	Up to 60 months	Up to $7,000
100	1545350400		$500 - $2,500	29% - 46.95%	6 - 36	$500 - $2,500
5	1545350400		$500 - $1000+	28%-32%	3	$500 - $1000+
100	1545350400		$500 – $750	28% – 34.4%	3	$500 – $750
100	1545350400		$500 – $750	23% - 34.4%	3 – 12	$500 – $750
100	1545350400		$300 - $1500	27% - 35%	3 - 4	$300 - $1500
4	1545264000		$500 - $100,000	Starting at 29.99%	9 - 84	$500 - $100,000
3	1545264000		Up to $5,000	47.72%	-	Up to $5,000
4	1568937600		$1,500 – $10,000	Varies by province	Varies	$1,500 – $10,000
10	1545177600		$1,000 - $35,000	5.99% - 29.19%	36 - 60	$1,000 - $35,000
18	1545177600		$100 - $20,000	Up to 46.8%	Up to 60	$100 - $20,000

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
3	1725321600		up to $40,000	-	-	up to $40,000
8	1714089600		$10,000 +	4%-45%	90 days+	$10,000 +
7	1714089600		$10,000 to $2,000,000	10%+	Up to 36	$10,000 to $2,000,000
3	1697414400		Up to $800,000	9% - 49.99%	3, 6, 9, or 12	Up to $800,000
2	1669852800		$5,000 - $300,000	-	3 - 24 months	$5,000 - $300,000
100	1648512000		$10,000 - $250,000	Varies	6-12	$10,000 - $250,000
100	1620345600		-	-	12 - 60	-
100	1611878400		$5,000 - $30,000,000	-	Up to 18	$5,000 - $30,000,000
17	1607558400		$500 - $50,000	6.99% - 46.99%	6 - 36	$500 - $50,000
100	1603756800		-	-	-	-
100	1598918400		-	-	-	-
100	1592438400		-	-	-	-
100	1585612800		-	0.9% - 12%	6 months - 5 years	-
100	1581984000		$10,000 - $10,000,000	6% - 12.5%	-	$10,000 - $10,000,000
100	1581292800		-	-	-	-
100	1581033600		-	-	-	-
100	1581033600		-	-	-	-
100	1581033600		-	-	-	-
100	1580947200		-	-	-	-
100	1580947200		$10,000 - $1,000,000	-	-	$10,000 - $1,000,000
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		$5,000 - $1,000,000	-	-	$5,000 - $1,000,000
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		up to $250,000	-	-	up to $250,000
100	1580860800		-	-	-	-
100	1580688000		Up to $10,000	-	-	Up to $10,000
100	1580256000		$5,000 - $500,000	-	6 - 18 months	$5,000 - $500,000
100	1579478400		-	-	-	-
100	1579478400		$10,000- $30,000,000	Min 4.95%	-	$10,000- $30,000,000
100	1579478400		-	-	12 - 120	-
100	1579478400		-	-	24 to 60	-
100	1579478400		-	-	-	-
100	1579478400		-	-	-	-
100	1579046400		-	-	-	-
100	1578873600		-	-	-	-
100	1577059200		-	-	-	-
100	1577059200		-	-	-	-
100	1577059200		-	-	-	-
100	1575849600		$5,000 - $150,000	15% +	6 - 24	$5,000 - $150,000
100	1575849600		Up to $250,000	-	-	Up to $250,000
100	1575590400		-	-	-	-
100	1575590400		-	-	-	-
1	1545955200		$5,000 - $150,000	Fee-Based: Starting at 9%	12 - 60	$5,000 - $150,000
100	1552262400		$500,000 - $10,000,000	-	-	$500,000 - $10,000,000
100	1552262400		-	Competitive	-	-
100	1552262400		-	-	-	-
100	1552262400		Up to $250,000	-	Up to 10 years	Up to $250,000
100	1552262400		-	-	-	-
100	1552262400		Up to $1,000,000	-	-	Up to $1,000,000
100	1551830400		Up to $100,000	-	-	Up to $100,000
100	1551830400		$10,000+	-	Up to 15 years	$10,000+
100	1551830400		Up to $1,000,000	-	Up to 15 years	Up to $1,000,000
100	1551830400		Up to $500,000	-	Up to 10 years	Up to $500,000
100	1551830400		$5,000 - $10,000	-	Up to 7 years	$5,000 - $10,000
100	1551398400		$3,500+	-	-	$3,500+
100	1551398400		$5,000+	4.9% - 24.99%	18 - 48	$5,000+
100	1551398400		$10,000 - $1,000,000	4% - 14%	12 - 84	$10,000 - $1,000,000
100	1551139200		Up to $75,000	-	Up to 18	Up to $75,000
100	1550534400		$500-$50,000	0.5% weekly	12 week cycles	$500-$50,000
100	1550534400		$1,000 - $1,000,000	6% - 20%	-	$1,000 - $1,000,000
100	1550534400		Up to $5,000,000	4.5%	24 - 72	Up to $5,000,000
100	1550534400		$5,000 - $200,000	-	-	$5,000 - $200,000
100	1549411200		$50,000 - $12,000,000	-	24 - 96	$50,000 - $12,000,000
100	1549411200		$5,000 - $1,000,000+	-	1 - 60	$5,000 - $1,000,000+
100	1549238400		$5,000 - $1,000,000	-	3 - 24	$5,000 - $1,000,000
100	1548720000		$5,000 - $5,000,000	-	4 - 18	$5,000 - $5,000,000
100	1548720000		Up to $100,000	6.05% +	60	Up to $100,000
100	1548720000		$10,000+	18% - 22%	-	$10,000+
100	1548720000		$10,000 - $300,000	4.70% - 5.45%	-	$10,000 - $300,000
100	1548633600		Up to $5,000,000	5% - 10%	12 - 60	Up to $5,000,000
10	1545177600		$1,000 - $35,000	5.6% – 25.5%	36 – 60	$1,000 - $35,000
100	1545264000		$5,000 - $250,000	-	3-18	$5,000 - $250,000
100	1545264000		$5,000 - $150,000	-	3 - 24	$5,000 - $150,000
6	1545350400		$5,000 – $100,000	15% +	12 – 18	$5,000 – $100,000
100	1545264000		$5,000 – $100,000	Starting at 6.87%	3 – 18	$5,000 – $100,000
5	1545177600		$5,000-$300,000	15% - 25%	4 - 24	$5,000-$300,000
4	1545177600		$5,000 – $500,000	Starting at 5.9%	3 – 60	$5,000 – $500,000
5	1545264000		$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1561507200		Up to $300,000	-	-	Up to $300,000

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
2	1679529600		Varies	varies	24 - 96 months	Varies
100	1643846400		up to $10,000	19.99%	12 - 36	up to $10,000
3	1632960000		Up to $50,000	15.99% +	12 -72	Up to $50,000
8	1624233600		Up to $50,000	29.99% – 46.96%	12 - 96	Up to $50,000
100	1610409600		-	-	-	-
17	1607558400		$500 - $50,000	-	24 - 60	$500 - $50,000
7	1606435200		$500 - $10,000	starting at 0%	3 - 48	$500 - $10,000
100	1600646400		$1,000-$7,500	12.99% - 29.99%	12 - 84	$1,000-$7,500
100	1594339200		-	-	-	-
100	1582761600		-	-	12 - 96	-
6	1582761600		-	11.9% - 22.9%	Up to 84	-
100	1582761600		-	0% - 29.5%	-	-
100	1581033600		-	+ 4.9%	-	-
100	1581033600		-	-	-	-
100	1580688000		-	-	-	-
100	1579478400		-	-	-	-
100	1579478400		-	-	-	-
100	1579478400		-	-	-	-
100	1579219200		-	-	-	-
100	1578873600		-	+8.99%	-	-
100	1578873600		-	-	-	-
100	1551830400		$5,000 - $10,000	-	up to 84	$5,000 - $10,000
100	1552262400		Up to $250,000	-	12 - 60	Up to $250,000
100	1552262400		Up to $1,000,000	-	up to 96	Up to $1,000,000
100	1551830400		Up to $100,000	-	6 - 96	Up to $100,000
100	1551830400		$10,000+	-	12 - 96	$10,000+
100	1551830400		Up to $1,000,000	-	up to 96	Up to $1,000,000
100	1577059200		-	-	up to 72	-
100	1577059200		-	-	-	-
100	1575849600		-	Starting at 4%	Up to 84	-
100	1575849600		$5000 - $45,000	4.90 % - 29.95% APR	36 - 72	$5000 - $45,000
100	1575849600		-	-	-	-
100	1575590400		-	-	-	-
100	1575504000		-	-	-	-
6	1569974400		$7500 - $59,995	3.95% +	12 - 96	$7500 - $59,995
100	1562112000		-	Up to 49.9%	-	-
100	1561507200		-	-	-	-
100	1561507200		-	-	Up to 84	-
1	1560124800		Up to $100,000	3.99% - 19.9%	24 -96	Up to $100,000
100	1551830400		Up to $30,000	-	-	Up to $30,000
100	1551830400		Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1550534400		-	-	-	-
100	1548720000		-	-	-	-
100	1548633600		-	4.2%+	-	-
100	1545955200		Up to $20,000	19% - 49%	36 - 48	Up to $20,000
5	1545264000		$500 - $10,000	12.99% – 39.99%	9 – 36	$500 - $10,000
100	1545177600		Up to $50,000	-	-	Up to $50,000
100	1545177600		$5,000 – $40,000	-	12 – 72	$5,000 – $40,000
100	1545177600		-	-	Maximum 84	-

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		Up to $50,000	Prime – 46.96%	3 - 120	Up to $50,000
100	1578873600		$1,000 - $35,000	-	24 - 60	$1,000 - $35,000
100	1545955200		Up to $20,000	19% - 49%	36 - 48	Up to $20,000
100	1545264000		Up to $25,000	-	12 - 60	Up to $25,000

		Provider	Loan Amount	Rate	Term (Months)	Rating
0	0		N/A	N/A	N/A	N/A
3	1726531200		$15,000 +	6% - 16%	12 - 60	$15,000 +
7	1708473600		Varies	Varies	1 - 10 years	Varies
5	1700524800		-	-	-	-
6	1696377600		-	5.69% +	-	-
100	1695945600		-	-	-	-
100	1695772800		-	-	-	-
4	1690934400		Varies	5.54%+	Varies	Varies
2	1688601600		Min $100,000	5.34%+	2 - 10 years	Min $100,000
3	1679616000		$100,000 - $2 million	Fixed, variable, or adjustable rates	1 - 5 years	$100,000 - $2 million
4	1541030400		-	Varies	6 months - 5 years	-
100	1627344000		-	1.94% - 2.45%	12 - 60	-
100	1551830400		Up to $500,000	5.75% – 9.9%	negotiable	Up to $500,000
100	1581033600		-	2.74% - 6.30%	12 - 120	-
100	1580947200		-	-	-	-
100	1580860800		-	-	-	-
100	1580860800		-	2.64% - 4.45%	12 - 120	-
100	1580860800		$50,000+	2.74% - 3.49%	12- 120	$50,000+
100	1580860800		-	-	36 - 60	-
100	1580860800		-	-	-	-
100	1580860800		-	-	-	-
100	1580688000		-	2.79% - 6.00%	6 - 60	-
100	1580688000		-	2.74% - 4.45%	12 - 120	-
100	1580688000		-	-	-	-
100	1579478400		-	2.74% - 3.70%	6 - 120	-
100	1579132800		-	2.79% - 4.45%	-	-
100	1578873600		-	-	-	-
100	1578873600		-	2.69% - 3.95%	6 - 120	-
100	1578268800		up to 4,000,000	3.49% - 5.49%	12 - 300	up to 4,000,000
100	1577059200		$25,000 - $800,000	4.59% - 5.64%	6 - 60	$25,000 - $800,000
100	1577059200		-	-	-	-
100	1577059200		-	--	-	-
100	1577059200		-	2.84% - 7.30%	-	-
100	1574985600		$100,000 - $750,000	-	12 - 120	$100,000 - $750,000
100	1574899200		min 25,000	3.89.% - 4.84%	12 - 60	min 25,000
100	1574899200		-	2.23% - 4.45%	-	-
100	1560124800		-	2.89% - 3.79%	-	-
100	1548806400		$10,000 - $1,500,000	Varies	12 - 24	$10,000 - $1,500,000
100	1548720000		-	2.41% - 3.84%	-	-
100	1548720000		-	-	-	-
1	1517097600		$10,000+	Based on equity	-	$10,000+

		Provider	Services	Rating
0	0		Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation	N/A (Referrer)
100	1576540800		Credit Counselling, Bankruptcy, Consumer Proposal
100	1576540800		Bankruptcy, Consumer Proposal
100	1576540800		Credit Counselling, Debt Management Program
100	1576368000		Credit Counselling, Debt Management Program
100	1576454400		Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

While buying a home in Toronto isn’t the easiest thing to do, given the high cost of housing in the city, it might be the way to go considering how valuable most real estate is in the urban areas of Ontario. In fact, paying down your mortgage comes with more benefits than earning the status of a homeowner.

Click here for more information about mortgages in Toronto.

In this case, we’re talking about your home equity and how you can use it to your advantage. Not sure what home equity entails or what you can do with it? Keep reading to learn more.

Using Your Home to Secure a HELOC

Remember, your home is an asset, especially in Toronto where real estate is always in high demand.

Building Your Home Equity

Generally speaking, you can build your home equity a couple of different ways:

• Paying down your mortgage over time
• Adding extra value to your home through renovations or property maintenance
• When your neighborhood becomes a more popular place for home purchases

To learn more about borrowing using your home equity, check this out.

Securing a HELOC (Home Equity Line of Credit)

Once you have enough home equity built up, you may be able to qualify for a line of credit that’s secured against your property. Similar to a credit card, you can draw from this revolving credit line in whatever amounts you need, then pay it back through monthly balances, only paying interest on what you’ve borrowed. The length of your payment term will depend on your lender’s policies in Toronto, but can sometimes last 25-30 years, the length of an average mortgage.

Looking for a personal line of credit? Here’s how you can get the best rate.

Once you have access to this line of credit, you can cover a whole range of expenses in Toronto, including but not limited to:

• High-interest debt consolidation
• Further increasing the value of your home (renovations, additions, etc.)
• Purchasing new furniture or appliances
• Repairs and/or maintenance for your car or another vehicle
• Tuition, books, and other educational expenses
• Utilities, internet, or other necessary service costs
• Installing new heating, air-conditioning, or ventilation in your house
• Any financial emergency that comes your way

Look here if you’re interested in finding the right car loan in Toronto.

Considerations to Make Before You Apply for a HELOC in Toronto

• HELOCs usually come with a variable interest rate, meaning your interest payments will fluctuate with Canada’s prime lending rate.
• Most lenders in Toronto require a minimum of 20% equity before you can apply.
• Most lenders in Toronto will also only lend a maximum of 80% of your available equity.
• Your home will be used as collateral to secure your HELOC. If you default on too many payments, you may be subject to foreclosure and bad financial damage.
• While variable interest rates are sometimes lower than fixed ones, your rate might be higher than a traditional mortgage rate if the HELOC qualifies as your “second” mortgage.
• However, some lenders in Toronto do allow for fixed rates in certain cases.

Deciding Between a HELOC and a Home Equity Loan

Once you’ve built up an adequate amount of home equity, there’s another type of financial product you can apply for in Toronto, known as a “home equity loan”, also commonly referred to as a second mortgage. It’s called a “second” mortgage because it’s technically another mortgage product that’s going to fall into second position next to your original (primary) mortgage.

Interested in applying for a home equity loan product? If so, click this link.

Although it doesn’t resemble the traditional mortgage process as much as a home equity loan, a HELOC can also qualify as a second mortgage. You can apply for either form of second mortgage through your primary lender in Toronto or through a secondary source.

The Differences

• Unlike a HELOC, which is a revolving credit line with a set credit limit, a home equity loan will be transferred as a lump sum directly into your bank account.
• Like an installment loan, the repayment process involves a series of equally divided payments over a specific schedule that you and your lender will negotiate.
• Payment plans are usually shorter than the average HELOC, meaning you’ll potentially be out of debt quicker.
• While it’s common for homeowners in Toronto to choose monthly payments, some lenders in Toronto may offer higher frequency payment options (weekly, bi-weekly, etc.).
• Although the terms of your payment plan can be negotiated beforehand, a home equity loan will generally have fixed installments, meaning each payment date and amount is set and must be met in order to avoid a penalty.
• With HELOCs, on the other hand, you’ll have the option of making minimum balance payments, as well as advanced payments, like a credit card.
• Home equity loans also generally come with a fixed interest rate, which can make it slightly easier to budget.

The Option That’s Best For Your Situation

• A home equity loan might be a better solution when you have one-time expenses that need to be financed quicker.
• A HELOC might be a better option when you have ongoing expenses and you’re not sure how much you’ll need to withdraw from month to month.

Want to know how you can get a second mortgage in Toronto? Find out here.

Second Mortgage Interest Rates

Before we move on, it’s important to know that your interest rate, whether it’s fixed or variable, may be higher than a primary mortgage rate if your HELOC or home equity loan qualifies as your second mortgage. This is because your lender in Toronto is taking more of a risk by approving a client who already has one mortgage on their property.

In addition, if you apply for your HELOC or home equity loan through a secondary lender in Toronto, your rate might even be even higher, due to the fact that said lender would be compensated last if you go into default and your home is foreclosed. Keep this in mind before you apply for any home equity product, as the cost of your rate can definitely affect your financial situation.

Wondering if you can beat your lender’s interest rate? Click here to know.

Appropriate Times to Borrow From Your Home Equity

Despite your home equity being a valuable tool, borrowing from it is only a good idea under the appropriate circumstances.

Only apply for a HELOC when you

• Have a steady source of income that allows you to afford both payments
• Have expenses that are too much for your credit card and savings to handle
• Are planning to purchase necessary things, rather than consumer goods
• Are trying to improve your credit through timely payments
• Want to take advantage of potentially lower variable interest rates

Read this so you can consider the hidden costs of buying a home.

Your HELOC is Close at Hand

If you’ve built up enough home equity in Toronto, then a HELOC might be a great choice for managing your expenses. If you need some more information or help with the home equity borrowing process, Loans Canada can connect you with a licensed mortgage professional in your area.