Home Equity Loans
From funding your child’s education to planning a wedding, or even covering unexpected expenses, life’s significant events can be costly. A Home Equity Loan can provide you with the financial flexibility you need to navigate life’s ups and downs.
What is a Home Equity Loan?
What is a Home Equity Loan?
A Home Equity Loan lets you access money quickly and with less restriction compared to traditional banks. Essentially, the loan amount is based on the equity of your home.
Which in most cases, you can borrow up to 80% of the value of your home.
As you pay down your mortgage or your home’s value increases, your equity—and thus your borrowing potential—grows. A Home Equity Loan can provide a lump sum of money that can be used for various purposes, such as home renovations, debt consolidation, or other major expenses.
Using Home Equity to Cover Medical Expenses
Michael, a 39-year-old software engineer, faced unexpected medical expenses from a recent surgery that wasn’t fully covered by his insurance. With his savings depleted and no immediate way to cover the remaining costs, Michael was worried about his financial stability. However, he had substantial equity built up in his home.
MonsterMortgage.ca assessed Michael’s situation and facilitated a loan against his home’s equity. We connected him with a lender who offered favorable terms, allowing Michael to access the funds he needed for his medical expenses. This approach enabled him to manage his costs effectively while keeping his monthly payments within his budget and preserving his long-term financial health.
Using Home Equity to Cover Medical Expenses
The MonsterMortgage.ca Difference
Our Customers Are Our Priority
With over 25 years of experience, we’ll work closely with you to assess your eligibility for different mortgage options, considering your financial situation and both short-term and long-term goals.
Get All The Facts
We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerous lenders so we can find you the most advantageous deal.
Our Reputation
We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.
Benefits
Access to Equity
Take money out of your home without the restrictions and qualifications of a traditional bank.
Borrow More
Utilizing your home’s equity allows you to qualify for higher loan amounts than traditional unsecured personal loans, depending on the value of your home and the amount of equity you have built.
Lump Sum Payment
A Home Equity Loan provides a lump sum payment upfront, giving you the funds you need to tackle your project or expense in one go.
Improve Your Credit
Using a Home Equity Loan responsibly can be a powerful tool for rebuilding your credit score. Over time, making consistent, on-time payments can lead to better credit ratings and qualify you for lower interest rates on future loans.
Have Questions?
We’re here to help you Get Started! Contact us with your questions, and we’ll provide personalized advice.
FAQs
A home equity loan can be a first or second mortgage. It is a type of loan that is secured by your home equity. You use your property as collateral, allowing you to borrow against the equity you have built in your home. This includes both home equity loans, which provide a lump sum, and home equity lines of credit (HELOCs), which offer a revolving credit line.
Yes, you can pay off a home equity loan early. Many borrowers choose to do so to reduce the amount of interest paid over the life of the loan. Paying off your home equity loan early can save you money and reduce your overall debt load. However, it’s important to check with your lender for any prepayment penalties or terms that might affect your ability to pay off the loan ahead of schedule.
To get started with a home equity loan, begin by evaluating your home’s equity. You can request a home appraisal to determine its current value. Next, gather your financial documents, such as income statements and existing loan details. Contact a lender to discuss your options, apply for the loan, and review the terms before finalizing. A professional advisor can guide you through each step to ensure you make informed decisions.
Yes, there are risks. The primary risk is that your home is used as collateral. If you fail to make payments, the lender could foreclose on your home. Additionally, taking out a large loan can put you at risk of higher debt levels and may impact your financial stability if your home’s value decreases.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
Call Us
Book an Appointment
Schedule an appointment on the calendar