Owning your own home can give you a great sense of pride, as well as a long term investment for your capital. Owning a home can also be a source of equity when the need to come up with a large sum of money arises, such major home renovations, tuition fees, or paying off outstanding debts. If you have built up some equity in your Toronto area home, you may be able to leverage this equity in order to pay for life’s major expenses. Taking advantage of a home equity loan Oakville, Burlington, Waterdown, Mississauga and other areas. A secured home loan or line of credit can give you the ability to access your home’s capital and equity.
How Home Equity Loans Work
The amount of equity in your home is measured by the difference between your home’s appraised market value and the mortgage balance outstanding on your home. Generally speaking, as time progresses, the value of your home increases, as long as the mortgage payments are consistently made on time, and the home is well cared for. If you have a certain level of equity built up in your home – through paying your principal down every month and the gradual increase in the property’s value over time – you may qualify for a home equity loan.
Why Choose A Home Equity Loan?
First of all, home equity loans give you the ability to pull out large sums of money to be used to pay for major expenses. Many Canadians may not have these large amounts of money saved up, so it is very convenient to be able to use the money locked in their homes. The large purchase can be anything you want – fees for higher education, a car, a trip, home renovations, a boat or other large cost items.
In addition, you can use your home’s equity to pay off outstanding loans and debt. This is advantageous because the interest rate is usually much lower on a home equity loan than unsecured debt. If you have credit card debt, for example, the interest you pay on each monthly bill is usually quite high – at least 16% and as high as 29% on store cards! Compare this to a home equity loan Oakville, which is usually much lower than that and comparable to mortgage interest rates.
By consolidating your debt into one monthly bill, you can take advantage of a much lower rate to pay off your outstanding debt, and have to manage only one bill a month as opposed to several.
A professional independent mortgage agent like Lee Anne Taylor can help you arrange the perfect home equity loan for you so that you can pay off your debts sooner, and help you pay for major expenses that come your way. Call this Dominion Lending Centre professional today at (905) 336-8948 or visit her website at www.HomeLoansOntario.ca.
