Mortgages by Niels

Home Equity Loan Bolton

For home owners an advantage is that over time your home is most likely appreciating in value and building equity. A home equity loan Bolton can be a loan comes in the shape of a first mortgage, second mortgage, third mortgage, refinance when there is no mortgage on your property or a HELOC (home equity line of credit). We can provide you with that extra cash flow or financial relief that you’re in need for in the short term and create a long term financial goal.

    How much can you borrow against the equity in your home?

    When it comes to the amount you can borrow against your home, you can calculate this by taking the total secured loans on the home and divide this by the approximate value of the home. In larger cities and surrounding suburbs there are lenders that will go as high as 85 to 95% loan to value for a home equity line of credit. For private lenders and second, third or fourth mortgages there are lenders that will go as high as 85% loan to value. Some factors that will be considered are ones like the state of the property and the real estate market appeal.

    Is equity loan a good idea?

    A home equity loan is registered charge against your property, this is different than a lien. With a registered charge the lender if not paid can move to foreclosure on your property. Understanding this is important to consider when you’re considering a home equity loan and if it is a good idea for you. Some of the pros are creating cash flow for upgrading your home, emergency fund, or consolidating debt at a lower interest rate. Some of the cons are that additional costs, accrue more debt, and possible loss of home.

    How long do you have to pay back home equity loan?

    For your HELOC (home equity line of credit) product the term typically ranges from 5 to 20 years, and you can take as long as 30 years to pay back your HELOC. For those who do not qualify for a HELOC there are alternatives like a second, third or fourth mortgage. The private lenders that will lend on the equity on your home will typically have a term of 1 year and sometimes 2 years. What is important to consider is what is your exit strategy from your term you’re entering. Consult with us on what is your best strategy to ensure you put yourself into a better financial position not only short term but as well that they match your long term financial goals.

    $1,000,000 Home with $400,000 First Mortgage
    Loan to Value 40%
    $1,000,000 Home with $500,000 First Mortgage
    Loan to Value 50%
    $1,000,000 Home with $600,000 First Mortgage
    Loan to Value 60%
    $1,000,000 Home with $700,000 First Mortgage
    Loan to Value 70%
    $1,000,000 Home with $800,000 First Mortgage
    Loan to Value 80%
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