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.