Have you considered this popular option?
The largest debt you will face as a homeowner is your mortgage. With the right approvals, you can borrow against the equity of your home with a home equity loan.
What is a Home Equity Loan?
This type of loan is slightly different to a home equity line of credit (HELOC), which is a line of revolving credit with an adjustable interest rate. A home equity loan is a one-time lump-sum loan. Lenders are generally comfortable adding to your current low mortgage rate because they are safeguarded by the fact that your loan is secured against your home.
A Tool for Debt Consolidation
The primary bonus of a home equity loan is in its debt consolidation capabilities.
How do I get a Home Equity Loan?
The best way of going about getting a home equity loan is through a Canadian mortgage rate professional.
Advantages of a Home Equity Loan
- Cash in your hands to pay off outstanding high interest debts.
- By paying off outstanding debts you will improve your credit score.
- The home equity loan can be spread over the lifespan of your best mortgage rate, often up to 25 years.
- Tax deductions are available.
Disadvantages of Home Equity Loans
- You risk your home if you can’t pay the loan back.
- When you borrow against your home you lose equity or ownership in the home.
Talk to a mortgage broker today to learn if this financial product is right for you.