As a homeowner, you are in a unique borrowing position. With
the right approvals, you can borrow against the equity in your home with a Canadalend secured loan.
What Is a Home Equity
Secured Loan?
A home equity loan is a second mortgage and is a secured
loan against the equity in your home. A secured loan allows homeowners to
borrow money from the equity in their home, without refinancing their current
mortgage. Equity in the home is the difference between the appraised value of
the home and the amount owed on the first mortgage. The loan amount available
is based on the amount of equity in the home. If you want to calculate the
equity in your home, here is an example:
Let’s assume your home is valued at $500,000. Canadalend can
help provide you financing for up to 90% of this value, which, in this case,
could be up to $450,000. If you have borrowed $300,000 against this amount
already, this leaves you with the option of securing a second mortgage of up to
$150,000.
Lenders are generally comfortable adding to your current
mortgage because they are safeguarded by the fact that your loan is secured
against your home. The best way of going about getting a secured loan is
through a mortgage professional. Canadalend mortgage specialists will work with
you to find out which options will work best for your needs.
Benefits of a Canadalend Secured Loan
- Consolidate high interest rate debts into a low interest rate payment that occurs monthly.
- The use of the built-up equity is an effective ways to reduce borrowing costs.
- Improved credit score by paying off outstanding debt.
- The ability to spread out a home equity secured loan for the duration of the mortgage.
- Access credit for unforeseen expenses.
- Cost-effectively finance a small business.
- Finance education costs for children.
- The ability to catch-up on mortgage and tax payments that may be in arrears.
- Access to cash.
Disadvantages of a Canadalend Secured Loan
- Potentially loss of the home should the loan not be paid back.
- Lost equity or ownership in the home from borrowing against it.
- Payment for closing costs and possibly a home appraisal will be required.
Opting for a Canadalend secured loan in the form of a home
equity loan may be your best option for getting out of certain financial
situations. Do not pay minimum payments on credit card bills or other unsecured
debt. Canadalend is a trusted name when it comes to assisting residents of
Toronto, Brampton and Mississauga, as well as many other Canadian cities in
securing home equity loans.