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.

 

• 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.