Getting A Home Equity Loan In Hamilton
Major expenses can come up at any time, causing stress and the potential for debt; Home repairs, automotive or medical expenses can demand immediate attention. A general
recommendation is to have a "rainy day fund” that will support living expenses for
at least three months. Although, these kinds of savings can be a challenge to maintain for those with
day-to-day expenses. For homeowners who have built equity in their homes, a
home equity loan is a way to satisfy unforeseen financial demands.
If you live in Hamilton, mortgage
brokers can advise you of the best loan take on to suit your financial needs
and satisfy any important investments.
Benefits of a Home Equity Line of Credit (HELOC)
As the name suggests, a HELOC is a flexible line of credit where
the funds borrowed come out of the equity of a home. Operating like a traditional
line of credit, borrowers will typically have up to 65 percent of the equity
acquired available in the home. Depending
on the type of HELOC, borrowers can find flexibility in a revolving line of
credit with the security
of a fixed-rate option.
How unique are HELOC's between one another?
All home equity lines of credit are not created equal, and HELOC interest rates can
vary between different lenders. This includes the big banks and independent
lending institutions. Some will have a higher or lower variable rate on top of
the prime rate, while others will offer differing lengths of time in which rates
are applicable. Despite these differences, there
are
similarities
amongst all types of HELOC loans:
- A pre-determined spending limit is accessible to
the customer at any time and the interest applies only on the balance
- Cheaper interest rates compared to other
fixed-rate loans (although generally higher than first mortgage rates)
- Flexible repayment methods – choosing either a
minimum payment made monthly, or larger, substantial sums repaid without
penalty
Real estate experts have
ranked the City of Hamilton as one of the top ten cities for real estate
investors. Maintaining an investment in property in Hamilton can be realized by
choosing to move forward with a home equity loan to secure a property, invest
in its maintenance, and provide a solid foundation for future financial
freedom.
Consult a lending advisor at Canadalend who can help answer any questions you have
about home equity loans and how they can benefit you.