Calgary, Alberta, Canada home mortgage, second mortgage

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Calgary, Alberta, Canada home mortgage, second mortgage

Interesting facts about second mortgage

You must have heard about second mortgage, but do you really know what it is? Well, in simple terms, it is a loan which is taken against a property’s value along with a primary mortgage. Such loans can offer you plentiful benefits. Considering its growing demand we at My Mortgage Broker offer such mortgage facilities to people residing in and around Calgary, Alberta, Canada.

Check out the different benefits

  • As it rests on the equity amount built in the home it will enable you in borrowing a huge sum with the flexibility of using the same for any purpose. When it comes to personal bank loans and credit cards these are smaller and also limited in scope.
  • With such mortgage plans you can deal with home improvement, debt consolidation, investing in properties, paying for school/college tuition or avoid the private mortgage insurance. The truth is other types of loans available will not be sufficient for covering such expenses
  • This form of loan is safer by lenders in comparison to others as it is secured via the house. Banks will get back something if you default the loan which means the borrower will score lower rates of interest in case of second mortgages compared to credit cards or unsecured loans
  • It will offer you the flexibility to borrow quite a big amount
  • It will serve as an emergency credit, which means it will prove beneficial for consolidating debt or if you face financial hardship.

Taking into consideration the above-mentioned benefits that second mortgages offer, it is indeed a variable option for every homeowner who seek to consolidate his/her debt, create a HELOC (Home Equity Line of Credit) or renovate the home. If you wish to reap the benefits of such loans get in touch with us today through phone or mail. We look forward to help you in the best way possible.

 

Calgary, Alberta, Canada HELOC-Home Equity Line of Credit

HELOC loan considerations

You can use the equity in your home to obtain a line of credit. This type of equity loan is known as a HELOC (Home Equity Line Of Credit). My Mortgage Broker (Verico) can help you with a HELOC in Alberta or Calgary. A home equity line of credit is a type of revolving credit secured by your home. It is a type of second mortgage.

If you have enough equity in your home a HELOC can be used to obtain low interest financing. This means you have access to a revolving source of funds during the draw periods. You can draw and payback as many times as you want. In some case the interest on your equity loan may be tax deductible. The interest rate is usually variable unless you negotiate a fixed rate advance. If you have a variable rate, you can also negotiate rate caps.

The normal draw period for a HELOC loan is 10 years. At the end of the draw period you will no longer be able to access available funds in your line of credit account. Repayments if any continue normally after the close of the draw period. Your monthly repayments on a HELOC will include principal and interest. If you have a variable rate loan, repayments will change if interest rates change.

There are several benefits to a HELOC. There are also potential risks. The benefits include access to liquid funds that you can use as you please. You can use them for home improvements, to pay off another loan, to pay for college education or whatever you want. Since HELOC loans are secured loans you will get a lower rate of interest. The interest is often tax deductible. The potential risk is that if you fail to make repayments problems will start to build.

 

 

 

 

Equity loan, home equity loan in Calgary, Alberta, Canada

Equity loan considerations

An equity loan against your property can provide you with funds for whatever purpose you need. My Mortgage Broker (Verico) can help you with an equity loan in Alberta or Calgary. Their team have many years’ mortgage experience and can help you make the right choices when it comes to equity loans.

Equity is the net value of your home. That is the difference between the value of your home and any outstanding mortgages against your home. So basically, if your home is worth a million and you have a mortgage of four hundred thousand your equity is six hundred thousand. It is possible to obtain an equity loan based on the net value of your property.

You will need a reasonable amount of equity to qualify for a second mortgage or line of credit. Equity loans can be used for a variety purposes. For example, you can use an equity loan for home improvements, or to pay off a high interest debt, or to pay for your child’s college education.

What is important when it comes to an equity loan is to get the best terms and conditions. A mortgage broker such as My Mortgage Broker (Verico) can help you do just that. There are two main types of equity loans. First there is the lump sum loan. With a lump sum loan a mortgage is registered against your property and you get paid out a lump sum. Another type of equity loan is known as HELOC (Home Equity Line of Credit). With this type of equity loan, you can draw smaller amounts as and when needed. Another option is a reverse mortgage loan.

Equity loans also have other option such as fixed or variable interest rates, loan period and repayment terms. It is best to consult with your broker in order to get the right advice and make the right decisions.

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